¨ | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
AU OPTRONICS CORP. | TAIWAN, REPUBLIC OF CHINA |
(Translation of Registrant’s name into English) | (Jurisdiction of incorporation or organization) |
Title of each class | Name of each exchange on which registered |
Common Shares of par value NT$10.00 each | The New York Stock Exchange, Inc.* |
* | Not for trading, but only in connection with the listing on the New York Stock Exchange, Inc. of American Depositary Shares representing such Common Shares |
Large accelerated filer x | Accelerated filer ¨ | Non-accelerated filer ¨ |
· | the cyclical nature of our industry; |
· | further declines in average selling prices; |
· | our ability to comply with the applicable covenants under the terms of our debt instruments; |
· | litigation and regulatory investigations against us; |
· | our dependence on introducing new products on a timely basis; |
· | our dependence on growth in the demand for our products; |
· | our continued ability to achieve high capacity utilization rates; |
· | our ability to effectively manage inventories; |
· | our dependence on a small number of customers for a substantial portion of our net |
· | our ability to allocate capacity efficiently and in a timely manner; |
· | implementation of our expansion plans and our ability to obtain capital resources for our planned growth; |
· | our ability to compete effectively; |
· | our dependence on the outsourcing of manufacturing by brand companies to original equipment manufacturing service providers; |
· | our ability to expand into new businesses, industries or internationally and to undertake mergers, acquisitions, investments or divestments; |
· | changes in the accounting standard as required by the ROC government; |
· | our dependence on key personnel; |
· | our relationship with our affiliates; |
· | our ability to acquire sufficient raw materials and key components and obtain equipment and services from our suppliers in suitable quantity and quality; |
· | changes in technology and competing products; |
· | possible disruptions in commercial activities caused by natural and human-induced disasters, including terrorist activity and armed conflict; |
· | general political, economic, financial and regulatory conditions; |
· | fluctuations in foreign currency exchange rates; and |
· | other factors in the “Risk Factors” section in this annual report. Please see “Item 3. Key Information—3.D. Risk Factors.” |
“Acer Display” | Acer Display Technology, Inc. | |
“AC” or “Alternative Current” | A high-efficiency AC module with integrated microinverter | |
“ADSs” | American Depositary Shares | |
“AFPD” | AFPD Pte., Ltd. | |
“AHVA” | Advanced hyper-viewing angle technology | |
“AMOLED” | Active-matrix organic light emitting diode | |
“AMVA” | AUO Advanced Multi-domain Vertical Alignment | |
“ | ||
AT&T Corporation and its affiliates | ||
“AUSP” | AUO SunPower Sdn. Bhd. | |
“BenQ” | BenQ Corporation | |
“BMC” | BenQ Materials Corp. | |
“BTA” | The basic tax amount | |
“China” | The People’s Republic of China, excluding Taiwan and the special administrative regions of Hong Kong and Macau | |
“Code” | The Internal Revenue Code of 1986, as amended | |
“Convertible Securities” | Bonds with warrants, preferred shares with warrants, convertible bonds, convertible preferred shares or certificates of warrants | |
“CTSP” | The Central Taiwan Science Park Development Office | |
“Delaware Court” | The United States District Court for the District of Delaware | |
“DG COMP” | The Commission of the European Communities Directorate-General for Competition | |
“DTC” | The Depository Trust Company | |
“Eidos” | Eidos Display, LLC and Eidos III, LLC | |
“EPA” | The Environmental Protection Administration of the Executive Yuan of the Taiwan | |
“eTP” | The embedded touch panel technology | |
“fabs” | Fabrication plants | |
“FDTC” | Fujitsu Display Technologies Corporation (which was merged into Fujitsu Limited) | |
“Federal Reserve Board” | The Federal Reserve System of the United States | |
“ |
Forhouse Corporation | ||
“FSC” | The ROC Financial Supervisory Commission | |
“GOA” | Our Gate On Array technology | |
“IBTA Statute” | The Statute of Income Basic Tax Amount | |
“ | ||
The International Financial Reporting Standards as issued by the International Accounting Standards Board | ||
“ITC” | The United States International Trade Commission | |
“Investment Regulations” | The ROC Regulations Governing Securities Investment by Overseas Chinese and Foreign Nationals | |
“KFTC” | The Korea Fair Trade Commission | |
“large-size panels” | Panels ten inches and above in diagonal length | |
“LED” | Light emitting diodes | |
“Lextar” | Lextar Electronics Corp. | |
“LTPS” | Low temperature poly-silicon method | |
“LG Display” or “LGD” | LG Display Co., Ltd. | |
“ | ||
“mm” | Millimeters | |
“MOEAIC” | Investment Commission of Ministry of Economic Affairs | |
“mobile PC” | Primarily includes notebooks, tablets, etc. | |
“Motorola” | Motorola Inc. | |
Nokia Corporation | ||
“NYSE” | The New York Stock Exchange | |
“non-ROC resident” | ||
“Northern California Court” | The United States District Court for the Northern District of California | |
“NSC” | National Science Counsel of the ROC Executive Yuan | |
“ODM” | Original Design Manufacturing | |
“OEM” | Original Equipment Manufacturing | |
“OGS” | One glass solution | |
“OLED” | An organic light emitting diode | |
“ | ||
, “us” or “we” | AU Optronics Corp. and its consolidated subsidiaries, unless the context suggests otherwise | |
“Oxide TFT” | Oxide Thin Film Transistor Technology | |
“PFIC” | A passive foreign investment company | |
“PRC” | or “China” | The People’s Republic of China, excluding Taiwan and the special administrative regions of Hong Kong and Macau |
“QDI” | Quanta Display Inc. | |
“QDIIs” | Qualified domestic institutional investors | |
“Qisda” | Qisda Corporation | |
“Raydium” | Raydium Semiconductor Corporation | |
“ROC” | or “Taiwan” | The island of Taiwan and the areas under the effective control of the Republic of China |
“ROC GAAP” | The generally accepted accounting principles in the ROC | |
“ROC government” | The government of the | |
“Samsung” | Samsung Electronics Co., Ltd. | |
“Samsung Group” | Samsung Electronics Co., Ltd. and its subsidiaries | |
“SEC” | The United States Securities and Exchange Commission | |
“ | ||
Sharp Corporation | ||
“Small to | Panels which are under ten inches in diagonal length | |
“subsidiary” | Companies owned directly or indirectly by AU Optronics Corp., unless the context suggests otherwise |
“SPTL” | SunPower Technology, Ltd., a subsidiary of SunPower Corporation | |
“ | ||
The International Financial Reporting Standards as issued by the International Accounting Standards Board and endorsed by the FSC, which are required to be adopted by applicable companies in the ROC pursuant to the Framework for Adoption of International Financial Reporting Standards by Companies in the ROC promulgated by the FSC on May 14, 2009 | ||
“ | ||
Toppan CFI (Taiwan) Co., Ltd. | ||
“ | ||
The United States Department of Justice | ||
“Unipac” | Unipac Optoelectronics Corp. | |
“WCG” | The wide color gamut technology | |
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
OFFER STATISTICS AND EXPECTED TIMETABLE |
KEY INFORMATION |
Selected Financial Data |
Year Ended and As of December 31, | ||||||||||||
2012 | 2013 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in millions, except percentages and earnings per share and per ADS data) | ||||||||||||
Consolidated Statements of Comprehensive Income (Loss) Data: | ||||||||||||
Net revenue | 378,470.9 | 416,363.0 | 13,957.9 | |||||||||
Gross profit (loss) | (13,122.9 | ) | 33,984.1 | 1,139.3 | ||||||||
Selling and distribution expenses | (6,377.2 | ) | (7,470.0 | ) | (250.4 | ) | ||||||
General and administrative expenses | (9,203.9 | ) | (9,691.1 | ) | (324.9 | ) | ||||||
Research and development expenses | (9,904.3 | ) | (8,530.5 | ) | (286.0 | ) | ||||||
Profit (loss) before income tax | (51,494.1 | ) | 5,236.0 | 175.6 | ||||||||
Income tax expense | 1,124.0 | 1,359.1 | 45.6 | |||||||||
Profit (loss) for the year | (52,618.1 | ) | 3,876.9 | 130.0 | ||||||||
Total comprehensive income (loss) for the year | (54,201.9 | ) | 6,875.4 | 230.5 | ||||||||
Profit (loss) for the year attributable to: | ||||||||||||
Stockholders of AU Optronics Corp. | (51,327.1 | ) | 3,804.2 | 127.6 | ||||||||
Non-controlling interests | (1,291.0 | ) | 72.7 | 2.4 | ||||||||
Total comprehensive income (loss) for the year attributable to: | ||||||||||||
Stockholders of AU Optronics Corp. | (52,751.7 | ) | 6,367.5 | 213.5 | ||||||||
Non-controlling interests | (1,450.2 | ) | 507.9 | 17.0 | ||||||||
Earnings (loss) per share—Basic | (5.81 | ) | 0.41 | 0.01 | ||||||||
Earnings (loss) per share—Diluted(1) | (5.81 | ) | 0.40 | 0.01 | ||||||||
Earnings (loss) per ADS equivalent—Basic | (58.15 | ) | 4.07 | 0.14 | ||||||||
Earnings (loss) per ADS equivalent—Diluted(1) | (58.15 | ) | 4.04 | 0.14 | ||||||||
Consolidated Statements of Financial Position Data: | ||||||||||||
Total current assets | 174,072.2 | 169,604.1 | 5,685.7 | |||||||||
Property, plant and equipment, net | 315,518.2 | 270,269.0 | 9,060.3 | |||||||||
Total assets | 515,008.5 | 464,835.9 | 15,582.8 | |||||||||
Total current liabilities | 192,221.7 | 181,338.6 | 6,079.1 | |||||||||
Total noncurrent liabilities | 186,638.0 | 130,507.1 | 4,375.0 | |||||||||
Total liabilities | 378,859.7 | 311,845.7 | 10,454.1 | |||||||||
Common stock | 88,270.5 | 96,242.5 | 3,226.4 | |||||||||
Non-controlling interests in subsidiaries | 14,062.6 | 14,036.5 | 470.5 | |||||||||
Total equity attributable to stockholders of AU Optronics Corp. | 122,086.2 | 138,953.7 | 4,658.2 | |||||||||
Other Financial Data: | ||||||||||||
Gross margin(2) | (3.5 | %) | 8.2 | % | 8.2 | % | ||||||
Net margin(3) | (13.9 | %) | 0.9 | % | 0.9 | % | ||||||
Capital expenditures | 43,332.6 | 25,457.8 | 853.4 | |||||||||
Depreciation and amortization | 75,276.4 | 63,637.7 | 2,133.3 | |||||||||
Net cash flows provided by operating activities | 35,747.9 | 49,642.4 | 1,664.2 | |||||||||
Net cash flows used in investing activities | (43,181.7 | ) | (23,223.8 | ) | (778.5 | ) | ||||||
Net cash flows used in financing activities | (5,940.4 | ) | (26,785.4 | ) | (897.9 | ) | ||||||
Segment Data: | ||||||||||||
Net revenue | ||||||||||||
Display business | 367,120.3 | 398,836.2 | 13,370.3 | |||||||||
Solar business | 11,350.6 | 17,526.8 | 587.6 | |||||||||
Segment profit (loss) (4) | ||||||||||||
Display business | (30,330.8 | ) | 12,017.9 | 402.9 | ||||||||
Solar business | (8,277.5 | ) | (3,725.4 | ) | (124.9 | ) |
Year Ended and As of December 31, | ||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in millions, except percentages and earnings per share and per ADS data) | ||||||||||||||||
Consolidated Statements of Comprehensive Income (Loss) Data: | ||||||||||||||||
Net revenue | 378,470.9 | 416,363.0 | 408,178.7 | 12,917.0 | ||||||||||||
Gross profit (loss) | (13,122.9 | ) | 33,984.1 | 48,510.6 | 1,535.1 | |||||||||||
Selling and distribution expenses | (6,377.2 | ) | (7,470.0 | ) | (7,799.0 | ) | (246.8 | ) | ||||||||
General and administrative expenses | (9,203.9 | ) | (9,691.1 | ) | (9,389.6 | ) | (297.1 | ) | ||||||||
Research and development expenses | (9,904.3 | ) | (8,530.5 | ) | (9,156.6 | ) | (289.8 | ) | ||||||||
Profit (loss) before income tax | (51,494.1 | ) | 5,236.0 | 19,980.4 | 632.3 | |||||||||||
Income tax expense | 1,124.0 | 1,359.1 | 3,243.2 | 102.6 | ||||||||||||
Profit (loss) for the year | (52,618.1 | ) | 3,876.9 | 16,737.2 | 529.7 | |||||||||||
Total comprehensive income (loss) for the year | (54,201.9 | ) | 6,875.4 | 18,914.9 | 598.6 | |||||||||||
Profit (loss) for the year attributable to: | ||||||||||||||||
Stockholders of AU Optronics Corp. | (51,327.1 | ) | 3,804.2 | 16,366.6 | 517.9 | |||||||||||
Non-controlling interests | (1,291.0 | ) | 72.7 | 370.6 | 11.8 | |||||||||||
Total comprehensive income (loss) for the year attributable to: | ||||||||||||||||
Stockholders of AU Optronics Corp. | (52,751.7 | ) | 6,367.5 | 18,125.7 | 573.6 | |||||||||||
Non-controlling interests | (1,450.2 | ) | 507.9 | 789.2 | 25.0 | |||||||||||
Earnings (loss) per share—Basic | (5.81 | ) | 0.41 | 1.70 | 0.05 | |||||||||||
Earnings (loss) per share—Diluted(1) | - | 0.40 | 1.69 | 0.05 | ||||||||||||
Earnings (loss) per ADS equivalent—Basic | (58.15 | ) | 4.07 | 17.01 | 0.54 | |||||||||||
Earnings (loss) per ADS equivalent—Diluted(1) | - | 4.04 | 16.88 | 0.53 | ||||||||||||
Consolidated Statements of Financial Position Data: | ||||||||||||||||
Total current assets | 174,072.2 | 169,604.1 | 185,614.5 | 5,873.9 | ||||||||||||
Property, plant and equipment, net | 315,518.2 | 270,269.0 | 231,814.7 | 7,335.9 | ||||||||||||
Total assets | 515,008.5 | 464,835.9 | 442,344.3 | 13,998.2 | ||||||||||||
Total current liabilities | 192,221.7 | 181,338.6 | 174,143.1 | 5,510.9 | ||||||||||||
Total noncurrent liabilities | 186,638.0 | 130,507.1 | 94,214.3 | 2,981.4 | ||||||||||||
Total liabilities | 378,859.7 | 311,845.7 | 268,357.4 | 8,492.3 | ||||||||||||
Common stock | 88,270.5 | 96,242.5 | 96,242.5 | 3,045.6 | ||||||||||||
Non-controlling interests in subsidiaries | 14,062.6 | 14,036.5 | 19,329.2 | 611.7 | ||||||||||||
Total equity attributable to stockholders of AU Optronics Corp. | 122,086.2 | 138,953.7 | 154,657.7 | 4,894.2 | ||||||||||||
Other Financial Data: | ||||||||||||||||
Gross margin(2) | (3.5 | %) | 8.2 | % | 11.9 | % | 11.9 | % | ||||||||
Net margin(3) | (13.9 | %) | 0.9 | % | 4.1 | % | 4.1 | % | ||||||||
Capital expenditures | 43,332.6 | 25,457.8 | 16,971.0 | 537.1 | ||||||||||||
Depreciation and amortization | 75,276.4 | 63,637.7 | 56,902.7 | 1,800.7 | ||||||||||||
Net cash flows provided by operating activities | 35,747.9 | 49,642.4 | 63,392.7 | 2,006.1 | ||||||||||||
Net cash flows used in investing activities | (43,181.7 | ) | (23,223.8 | ) | (13,106.8 | ) | (414.8 | ) | ||||||||
Net cash flows used in financing activities | (5,940.4 | ) | (26,785.4 | ) | (45,041.5 | ) | (1,425.4 | ) | ||||||||
Segment Data: | ||||||||||||||||
Net revenue | ||||||||||||||||
Display business | 367,120.3 | 398,836.2 | 384,335.2 | 12,162.5 | ||||||||||||
Solar business | 11,350.6 | 17,526.8 | 23,843.5 | 754.5 | ||||||||||||
Segment profit (loss) (4) | ||||||||||||||||
Display business | (30,330.8 | ) | 12,017.9 | 24,422.5 | 772.8 | |||||||||||
Solar business | (8,277.5 | ) | (3,725.4 | ) | (2,257.1 | ) | (71.4 | ) |
(1) | Diluted earnings per share in 2012 was not |
(2) | Gross margin is calculated by dividing gross profit (loss) by net revenue. |
(3) | Net margin is calculated by dividing profit (loss) for the year by net revenue. |
(4) | Segment profit (loss) represents gross profit (loss) minus selling and distribution expenses, general and administrative expenses and research and development expenses. |
Exchange Rate | Exchange Rate | |||||||||||||||||||||||||||||||
Average | High | Low | Period-End | Average | High | Low | Period-End | |||||||||||||||||||||||||
(or month-end rates for years) | (or month-end rates for years) | |||||||||||||||||||||||||||||||
2009 | 32.96 | 35.21 | 31.95 | 31.95 | ||||||||||||||||||||||||||||
2010 | 31.49 | 32.43 | 29.14 | 29.14 | 31.49 | 32.43 | 29.14 | 29.14 | ||||||||||||||||||||||||
2011 | 29.38 | 30.67 | 28.50 | 30.27 | 29.38 | 30.67 | 28.50 | 30.27 | ||||||||||||||||||||||||
2012 | 29.56 | 30.28 | 28.96 | 29.05 | 29.56 | 30.28 | 28.96 | 29.05 | ||||||||||||||||||||||||
2013 | 29.68 | 30.20 | 28.93 | 29.83 | 29.68 | 30.20 | 28.93 | 29.83 | ||||||||||||||||||||||||
2014 | 30.30 | 31.80 | 29.85 | 31.60 | ||||||||||||||||||||||||||||
September | 29.62 | 29.81 | 29.51 | 29.56 | 30.13 | 30.47 | 29.89 | 30.44 | ||||||||||||||||||||||||
October | 29.38 | 29.49 | 29.32 | 29.42 | 30.40 | 30.49 | 30.31 | 30.45 | ||||||||||||||||||||||||
November | 29.52 | 29.65 | 29.37 | 29.59 | 30.73 | 30.99 | 30.48 | 30.99 | ||||||||||||||||||||||||
December | 29.72 | 30.03 | 29.53 | 29.83 | 31.35 | 31.80 | 31.03 | 31.60 | ||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||||
2015 | ||||||||||||||||||||||||||||||||
January | 30.14 | 30.31 | 29.90 | 30.31 | 31.64 | 32.00 | 31.06 | 31.75 | ||||||||||||||||||||||||
February | 30.31 | 30.37 | 30.25 | 30.29 | 31.55 | 31.76 | 31.31 | 31.44 | ||||||||||||||||||||||||
March (through March 14, 2014) | 30.29 | 30.34 | 30.24 | 30.34 | ||||||||||||||||||||||||||||
March (through March 13, 2015) | 31.54 | 31.71 | 31.35 | 31.71 |
Capitalization and Indebtedness |
Reason for the Offer and Use of Proceeds |
RiskFactors |
· | our ability to develop and introduce new products to meet customers’ needs in a timely manner; |
· | our ability to develop or acquire and implement new manufacturing processes and product technologies; |
· | our ability to control our fixed and variable costs and operating expenses; |
· | our ability to manage our product mix; |
· | our ability to obtain raw materials and components at acceptable prices and in a timely manner; |
· | lower than expected growth in demand |
· | our ability to obtain adequate external financing on satisfactory terms; and |
· | fines and penalties payable relating to the alleged violation of antitrust ,competition laws and |
· | rapid changes from month to month, including shipment volume and product mix change; |
· | the cyclical nature of the industry, including fluctuations in average selling prices, and |
· | the speed at which we and our competitors expand production capacity; |
· | access to raw materials and components, equipment, electricity, water and other required utilities on a timely and economical basis; |
· | technological changes; |
· | the loss of a key customer or the postponement, rescheduling or cancellation of large orders from customers; |
· | the outcome of ongoing and future litigation and government investigations; |
· | changes in end-users’ spending patterns; |
· | changes to our management team; |
· | access to funding on satisfactory terms; |
· | our customers’ adjustments in their inventory; |
· | changes in general political, economic, financial and legal conditions; and |
· | natural disasters, such as typhoons and earthquakes, and industrial accidents, such as fires and power failures, as well as geo-political instability as a result of terrorism or political or military conflicts. |
· | our growth plan and strategy; |
· | manufacturing process and product technologies; |
· | market conditions; |
· | prices of equipment; |
· | costs of construction and installation; |
· | market conditions for financing activities of display panel manufacturers; |
· | interest rates and foreign exchange rates; and |
· | social, economic, financial, political and other conditions in Taiwan and elsewhere. |
· | price; |
· | product performance features and quality; |
· | customer service, including product design support; |
· | ability to reduce production cost; |
· | ability to provide sufficient quantity of products to fulfill customers’ needs; |
· | research and development, including the ability to develop |
· | time-to-market; and |
· | access to capital. |
· | problems integrating the acquired operations, technologies or products into our existing business and products; |
· | diversion of management’s time and attention from our core business; |
· | conflicts with joint venture partners; |
· | adverse effect on our existing business relationships with customers; |
· | need for financial resources above our planned investment levels; |
· | failures in recognizing anticipated synergies; |
· | difficulties in retaining business relationships with suppliers and customers of the acquired company; |
· | risks associated with entering markets in which we lack experience; |
· | potential loss of key employees of the acquired company; and |
· | potential write-offs of acquired assets. |
· | the level of contaminants in the manufacturing environment; |
· | human error; |
· | equipment malfunction; |
· | use of substandard raw materials and components; and |
· | inadequate sample testing. |
· | discontinue using disputed manufacturing process technologies; |
· | pay substantial monetary damages; |
· | seek to develop non-infringing technologies, which may not be feasible; |
· | stop shipment to certain areas; and/or |
· | seek to acquire licenses to the infringed technology, which may not be available on commercially reasonable terms, if at all. |
(1) | we pay stock dividends on our shares; |
(2) | we make a free distribution of shares; |
(3) | ADS holders exercise preemptive rights in the event of capital increases for cash; or |
(4) | investors purchase our shares, directly or through the depositary, on the Taiwan Stock Exchange, and deliver our shares to the custodian for deposit into our ADS facility, or our existing shareholders deliver our shares to the custodian for deposit into our ADS facility. |
· | the evaluation standards for director’s independence; |
· | the requirements for non-management directors to meet regularly without management; |
· | the requirement to have nominating/corporate governance committee; |
· | the requirement to have a compensation committee set up pursuant to NYSE rules; |
· | the requirement for shareholders’ approval on all equity based compensation and material revisions thereto; and |
· | the requirement to adopt NYSE corporate governance |
INFORMATION ON THE COMPANY |
History and Development of the Company |
Business Overview |
· |
· | Monitors, which typically utilize display panels ranging from 17 inches to |
· |
· | Mobile devices, which typically utilize display panels ranging from 1.6 inches to 7 inches, including products such as mobile phones. |
· | Commercial and other applications, which typically utilize display panels ranging from 2.5 inches to 22 inches or above for use in products such as |
Year Ended December 31, | ||||||||
2012 | 2013 | |||||||
(Panels in thousands) | ||||||||
Panels for Mobile PCs | 56,759.0 | 59,325.0 | ||||||
Panels for Monitors | 28,599.7 | 30,983.9 | ||||||
Panels for Consumer Electronics Products | 159,808.1 | 145,664.4 | ||||||
Panels for LCD Televisions | 32,575.1 | 33,521.0 | ||||||
Total | 277,741.9 | 269,494.3 |
Year Ended December 31, | ||||||||||||
2012 | 2013 | 2014 | ||||||||||
(Panels in thousands) | ||||||||||||
Products for Televisions | 32,575.1 | 33,521.0 | 31,793.3 | |||||||||
Products for Monitors | 28,599.7 | 30,983.9 | 28,561.7 | |||||||||
Products for Mobile PCs | 56,759.0 | 59,325.0 | 66,148.5 | |||||||||
Products for Mobile Devices | 107,038.4 | 89,045.0 | 102,642.1 | |||||||||
Products for Commercial and Other Applications | 52,769.7 | 56,619.4 | 58,478.5 | |||||||||
Total | 277,741.9 | 269,494.3 | 287,624.1 |
Year Ended December 31, | ||||||||||||
2012 | 2013 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in millions) | ||||||||||||
Panels for Mobile PCs | 72,373.6 | 78,376.8 | 2,627.4 | |||||||||
Panels for Monitors | 59,576.0 | 59,564.2 | 1,996.8 | |||||||||
Panels for Consumer Electronics Products | 57,746.5 | 63,271.8 | 2,121.1 | |||||||||
Panels for LCD Televisions(1) | 168,892.2 | 188,428.2 | 6,316.7 | |||||||||
Others(2) | 19,882.6 | 26,722.0 | 895.9 | |||||||||
Total | 378,470.9 | 416,363.0 | 13,957.9 |
Year Ended December 31, | ||||||||||||||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||||||||||||||
NT$ | % | NT$ | % | NT$ | US$ | % | ||||||||||||||||||||||
(in millions, except for percentages) | ||||||||||||||||||||||||||||
Products for Televisions | 168,892.2 | 44.6 | 188,428.2 | 45.3 | 171,399.6 | 5,424.0 | 42.0 | |||||||||||||||||||||
Products for Monitors | 59,576.0 | 15.7 | 59,564.2 | 14.3 | 57,549.0 | 1,821.2 | 14.1 | |||||||||||||||||||||
Products for Mobile PCs | 72,373.6 | 19.1 | 78,376.8 | 18.8 | 75,353.6 | 2,384.6 | 18.5 | |||||||||||||||||||||
Products for Mobile Devices | 23,592.0 | 6.3 | 26,670.0 | 6.4 | 34,412.5 | 1,089.0 | 8.4 | |||||||||||||||||||||
Products for Commercial and Other Applications | 34,154.5 | 9.0 | 36,601.8 | 8.8 | 39,117.1 | 1,237.9 | 9.6 | |||||||||||||||||||||
Solar Products | 11,350.6 | 3.0 | 17,526.8 | 4.2 | 23,843.5 | 754.5 | 5.8 | |||||||||||||||||||||
Others(1) | 8,532.0 | 2.3 | 9,195.2 | 2.2 | 6,503.4 | 205.8 | 1.6 | |||||||||||||||||||||
Total | 378,470.9 | 100.0 | 416,363.0 | 100.0 | 408,178.7 | 12,917.0 | 100.0 |
(1) | Includes sales |
Year Ended December 31, | ||||||||||||||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||||||||||||||
Region | NT$ | % | NT$ | % | NT$ | US$ | % | |||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||||||
Taiwan | 150,790.4 | 39.8 | 143,549.4 | 34.5 | 135,420.4 | 4,285.4 | 33.2 | |||||||||||||||||||||
PRC | 114,469.5 | 30.2 | 141,951.3 | 34.1 | 135,102.4 | 4,275.4 | 33.1 | |||||||||||||||||||||
Japan | 14,864.2 | 3.9 | 42,562.6 | 10.2 | 37,410.4 | 1,183.9 | 9.1 | |||||||||||||||||||||
Singapore | 31,397.4 | 8.3 | 23,280.8 | 5.6 | 34,237.7 | 1,083.4 | 8.4 | |||||||||||||||||||||
Malaysia | 4,675.5 | 1.2 | 12,986.3 | 3.1 | 12,952.0 | 409.9 | 3.2 | |||||||||||||||||||||
Others(1) | 62,273.9 | 16.6 | 52,032.6 | 12.5 | 53,055.8 | 1,679.0 | 13.0 | |||||||||||||||||||||
Total | 378,470.9 | 100.0 | 416,363.0 | 100.0 | 408,178.7 | 12,917.0 | 100.0 |
Year Ended December 31, | ||||||||||||||||
2012 | 2013 | |||||||||||||||
Region | Net Sales | % | Net Sales | % | ||||||||||||
(in NT$ millions, except percentages) | ||||||||||||||||
Taiwan | 150,790.4 | 39.8 | % | 143,549.4 | 34.5 | % | ||||||||||
PRC | 114,469.5 | 30.2 | % | 141,951.3 | 34.1 | % | ||||||||||
Japan | 14,864.2 | 3.9 | % | 42,562.6 | 10.2 | % | ||||||||||
Singapore | 31,397.4 | 8.3 | % | 23,280.8 | 5.6 | % | ||||||||||
United States | 15,852.5 | 4.2 | % | 13,751.4 | 3.3 | % | ||||||||||
Korea | 18,864.2 | 5.0 | % | 12,574.1 | 3.0 | % | ||||||||||
Others(1) | 32,232.7 | 8.6 | % | 38,693.4 | 9.3 | % | ||||||||||
Total | 378,470.9 | 100.0 | % | 416,363.0 | 100.0 | % |
(1) |
Glass Substrates | Liquid Crystals | Color Filters | Polarizer | |||||||
Asahi Glass | JNC Corporation | Dai Nippon Printing | Novatek | |||||||
Corning Taiwan | Merck | Toray Industries | LG Chem | Raydium Semiconductor(2) | ||||||
Nippon Electric Glass | Nitto Denko | |||||||||
Sumika Technology |
(1) |
(2) |
· | price, based in large part on the ability to ramp-up lower cost, advanced technology production facilities before competitors; |
· | product features and quality; |
· | customer service, including product design support; |
· | ability to keep production costs low by maintaining high yield and operating at full capacity; |
· | ability to provide sufficient quantity of products to meet customer demand; |
· | quality of the research and development team; |
· | time-to-market; |
· | superior logistics; and |
· | access to capital. |
Organizational Structure |
Subsidiary | Main Activities | Jurisdiction of Incorporation | Percentage of Ownership Interest | ||
AU Optronics (L) Corp. | Holding and trading company | Malaysia | 100.00% | ||
AU Optronics Corporation America | Sales and sales support of TFT-LCD modules | United States | 100.00%(1) | ||
AU Optronics Corporation Japan | Sales and sales support of TFT-LCD modules | Japan | 100.00%(1) | ||
AU Optronics Europe B.V. | Sales support of TFT-LCD modules | Netherlands | 100.00%(1) | ||
AU Optronics Korea Ltd. | Sales support of TFT-LCD modules | South Korea | 100.00%(1) | ||
AU Optronics Singapore Pte. Ltd. | Holding company and sales support of TFT-LCD modules | Singapore | 100.00%(1) | ||
AU Optronics (Shanghai) Co., Ltd. | Sales support of TFT-LCD modules | PRC | 100.00%(1) | ||
AU Optronics (Xiamen) Corp. | Assembly of TFT-LCD modules | PRC | 100.00%(1) | ||
AU Optronics (Suzhou) Corp., Ltd. | Assembly of TFT-LCD modules | PRC | 100.00%(1) | ||
AU Optronics (Czech) s.r.o. | Assembly of solar PV modules | Czech Republic | 100.00%(1) | ||
AU Optronics Manufacturing (Shanghai) Corp. | Assembly of TFT-LCD modules | PRC | 100.00%(1) | ||
AU Optronics (Slovakia) s.r.o. | manufacturing and sale of molds | Slovakia Republic | 100.00%(1) | ||
AUO Energy (Tianjin) Corp. | PRC | 100.00%(13) | |||
AUO Green Energy America Corp. | Holding company, sale and sales support of solar modules | United States | 100.00%(13) | ||
AUO Green Energy Europe B.V. | Holding company and sales support of solar modules | Netherlands | 100.00%(13) | ||
BriView (Xiamen) Corp. | Manufacturing and sale of liquid crystal products, TV | PRC | 100.00%(5) | ||
Darwin Precisions (L) Corp. | Holding and trading company | Malaysia | 100.00%(2) | ||
Darwin Precisions (Hong Kong) Limited | Holding company | Hong Kong | 100.00%(3) | ||
Darwin Precisions (Suzhou) Corp. | Manufacturing, assembly and sale of TFT-LCD modules, backlight modules and related parts | PRC | 100.00%(4) | ||
Darwin Precisions (Xiamen) Corp. | Manufacturing, assembly and sale of TFT-LCD modules, backlight modules and related parts | PRC | 100.00%(4) | ||
Darwin Precisions | Manufacturing, assembly and sale of TFT-LCD modules, backlight modules and related parts | PRC | 100.00%(4)(23) | ||
Huizhou Bri-King Optronics Co., Ltd. | Manufacturing and sale of liquid crystal products and related parts | PRC | 51.00%(1)(23) |
Subsidiary | Main Activities | Jurisdiction of Incorporation | Percentage of Ownership Interest | |
BriView (Kunshan) Co., Ltd. | Manufacturing and sale of liquid crystal products, TV sets and related parts | PRC | 100.00% | |
Manufacturing and sale of liquid crystal products, TV sets and related parts | PRC | 100.00%(5) | ||
Forhouse International Holding Ltd. | Holding and trading company | BVI | 100.00%(2) | |
Force International Holding Ltd. | Holding company | BVI | 100.00%(2) | |
Fullhouse Corporation Sdn. Bhd. | Manufacturing and sale of electronics dartboard | Malaysia | 100.00%(16) (23) | |
Forefront Corporation | Holding company | Mauritius | 100.00%(20) | |
Fortech International Corp. | Holding and trading company | Mauritius | 100.00%(16) | |
Forward Optronics International Corp. | Holding company | Samoa | 100.00%(16) | |
Prime Forward International Ltd. | Holding company | Samoa | 100.00%(16) | |
Full Luck Precisions | Holding and trading company | Mauritius | 100.00%(16) | |
Forhouse Electronics (Suzhou) Co., Ltd. | Manufacturing and sale of motorized treadmills | PRC | 100.00%(21) | |
Fortech Electronics (Suzhou) Co., Ltd. | Manufacturing, assembly, and sale of TFT-LCD modules, backlight modules and related parts | PRC | 100.00% | |
Fortech Optronics (Xiamen) Co., Ltd. | Manufacturing, assembly, and sale of TFT-LCD modules, backlight modules and related parts | PRC | 100.00%(17) | |
Suzhou Forplax Optronics Co., Ltd. | Manufacturing and sale of light guide plates | PRC | 100.00% | |
Fortech Electronics (Kunshan) Co., Ltd. | Manufacturing, assembly, and sale of TFT-LCD modules, backlight modules and related parts | PRC | 100.00%(18) | |
Full Luck (Wujiang) Precisions, Co., Ltd. | Manufacturing and sale of precision metal parts | PRC | 100.00%(19) | |
Konly Venture Corp. | Venture capital investment | ROC | 100.00% | |
Ronly Venture Corp. | Venture capital investment | ROC | 100.00% | |
Darwin Precisions Corporation | Manufacturing, design and sale of TFT-LCD modules, TV set, backlight modules and related parts | ROC | 43.48%(6) (7) | |
Toppan CFI (Taiwan) Co., Ltd. | Manufacturing and sale of color filters | ROC | 49.00%(7) | |
BriView (L) Corp. | Holding and trading company | Malaysia | 100.00%(12) | |
AUO Crystal Corp. | Design, manufacture and sale of solar modules | ROC | 96.56%(11) | |
AUO Crystal (Malaysia) Sdn. Bhd. | Manufacturing and sale of single crystal silicon wafers | Malaysia | 100.00%(9) |
Subsidiary | Main Activities | Jurisdiction of Incorporation | Percentage of Ownership Interest | ||
Manufacturing and sale of | |||||
Japan | |||||
AFPD Pte., Ltd. | Manufacturing LCD panels based on low temperature polysilicon technology | Singapore | 100.00%(1) | ||
AU Optronics (Kunshan) Co., Ltd. | Manufacturing, assembly and sale of TFT-LCD panels | PRC | 49.00%(1)(7) | ||
AUO Green Energy Germany GmbH | Sales support of solar modules | Germany | 100.00%(10) (23) | ||
Solar power generation | ROC | 100.00%(8) | |||
Evergen Power Corporation | Solar power generation | ROC | 100.00%(8) | ||
Sanda Materials Corporation | Venture capital investment | ROC | 99.90%(15) | ||
a. u. Vista Inc. | Research and development and IP related business | United States | 100.00%(1) |
(1) | Indirectly, through our 100% ownership of AU Optronics (L) Corp. |
(2) | Indirectly, through our |
(3) | Indirectly, through our 100% ownership of Darwin Precisions (L) Corp. |
(4) | Indirectly, through our 100% ownership of Darwin Precisions (Hong Kong) Limited. |
(5) | Indirectly, through our 100% ownership of BriView (L) Corp. |
(6) |
(7) | We exercise de facto control over the relevant operating |
(8) | Indirectly, through our 100% ownership of Konly Venture Corp. |
(9) | Indirectly, through our |
(10) | Indirectly, through our 100% ownership of AUO Green Energy Europe B.V. |
(11) |
(12) | 70.29% held indirectly through AU Optronics (L) Corp. and 29.71% held indirectly through |
(13) | Indirectly, through our 100% ownership of AU Optronics Singapore Pte. Ltd. |
(14) | Indirectly, through our 99.90% ownership of Sanda Materials Corporation. |
(15) | 99.86% held directly by us, 0.03% held indirectly through Konly Venture Corp., and 0.01% held indirectly through Ronly Venture Corp., respectively. |
(16) | Indirectly, through our 100% ownership of Forhouse International Holding Ltd. |
(17) | Indirectly, through our 100% ownership of Fortech International Corp. |
(18) | Indirectly, through our 100% ownership of Prime Forward International Ltd. |
(19) | Indirectly, through our 100% ownership of Full Luck Precisions Co., Ltd. |
(20) | Indirectly, through our 100% ownership of Force International Holding Ltd. |
(21) | Indirectly, through our 100% ownership of Forefront Corporation. |
(22) | 34.48% held indirectly through Forward Optronics International Corp. and 65.52% held indirectly through Fortech International Corp., respectively. |
(23) | Darwin Precisions (Chengdu) Corp., BriView (Kunshan) Co., Ltd., AUO Green Energy Germany GmbH, Fullhouse Corporation Sdn. Bhd. and Huizhou Bri-King Optronics Co., Ltd. are in the process of liquidation as of December 31, 2014. |
· |
· |
Property, Plants and Equipment |
Fab | Location | Building Size | Generation | Input Substrate Size | Commencement of Commercial Production | Primary Use | Owned or Leased | |||||||
(in square meters) | (in millimeters) | |||||||||||||
L3A | No. 5, Li-Hsin Rd. 6, Hsinchu Science Park, Hsinchu 30078, Taiwan, ROC | 69,647 | 3.5 | 610x720 | December 1999 | Manufacturing of TFT-LCD panels | • Building is owned • Land is leased (expires in December 2020) | |||||||
L3C | No. 23, Li-Hsin Rd. Hsinchu Science Park, Hsinchu 30078, Taiwan, ROC | 105,127 | 3.5 | 600x720 | July 1999 | Manufacturing of TFT-LCD panels | • Building is owned • Land is leased (expires in January 2017) | |||||||
L3D L5D | No. 189, Hwaya Rd. 2, Kueishan Hwaya Science Park, Kueishan 33383, Taoyuan, ROC | 162,826 | 3.5 5 | 620x750 1,100x 1,300 | December 2001 October 2003 | Manufacturing of TFT-LCD panels | • Building is owned • Land is owned | |||||||
L4A L5A L5B | No. 1, Xinhe Rd. Aspire Park Lungtan 32543, Taoyuan Taiwan, ROC | 535,528 | 4 5 5 | 680x880 1,100x1,250 1,100x1,300 | November 2001 March 2003 February 2004 | Manufacturing of TFT-LCD panels; module and component assembly; manufacturing of color filters | • Building is owned • Land is owned | |||||||
L6B | No. 228, Lungke St., Lungke Science Park, Lungtan, 32542, Taoyuan, Taiwan, ROC | 867,955 | 6 | 1,500x1,850 | August 2005 | Manufacturing of TFT-LCD panels; module and component assembly; manufacturing of color filters | • Building is owned • Land is leased (expires in December 2027) |
Fab | Location | Building Size | Generation | Input Substrate Size | Commencement of Commercial Production | Primary Use | Owned or Leased | |||||||
(in square meters) | (in millimeters) | |||||||||||||
L6A L5C L7A L7B L8A | No. 1 JhongKe Rd. Central Taiwan Science Park Taichung 40763, Taiwan, ROC | 1,430,750 | 6 5 7.5 7.5 8.5 | 1,500x1,850 1,100x1,300 1,950x2,250 1,950x2,250 2,200x2,500 | March 2005 August 2005 June 2006 March 2009 March 2009 | Manufacturing of TFT-LCD panels; module and component assembly; manufacturing of color filters | • Building is owned • Land is leased (expires in December 2022) | |||||||
L8B | No. 1, Machang Rd. Central Taiwan Science Park Houli Dist Taichung City 42147, Taiwan, ROC. | 587,810 | 8.5 | 2,200x2,500 | June 2011 | Manufacturing of TFT-LCD panels; module and component assembly; manufacturing of color filters | • Building is owned • Land is leased (expires in December 2025) | |||||||
L4B | 10 Tampines Industrial Avenue 3 Singapore 528798 | 183,341 | 4.5 | 730x920 | August 2002 | Manufacturing of TFT-LCD panels | • Building is owned • Land is leased (expires in June 2059) | |||||||
Module S01, S02, S06 | No. 398, Suhong Zhong Road Suzhou Industrial Park, Suzhou, the PRC | 413,035 | N/A | N/A | July 2002 | TFT-LCD module and component assembly | • Building is owned • Land is leased (expires in 2054) | |||||||
Module S03 | No. 3, Lane 58, San-Zhuang Rd., Songjiang Export Processing Zone, Shanghai, the PRC | 83,508 | N/A | N/A | October 2004 | TFT-LCD module and component assembly | • Building is owned • Land is leased (expires in 2052) | |||||||
Module S11, S16 | No. 1689, North of XiangAn Rd., XiangAn Branch, Torch Hi-tech Industrial Development Zone, Xiamen, the PRC | 289,744 | N/A | N/A | April 2007 | TFT-LCD module and component assembly | • Building is owned • Land is leased (expires in 2056) |
Location | Building Size | Commencement of Commercial Production | Primary Use | Owned or Leased | ||||||
(in square meters) | ||||||||||
No. 1 JhongKe Rd. Central Taiwan Science Park, Taichung Taiwan, ROC | April 2010 November 2011 | Manufacturing of | • Building is owned • Land is leased (expires in December 2022) | |||||||
No. 1, , Xitun Dist., Taichung City | June 2011 | • Building is owned • Land is leased | ||||||||
• Building is owned • Land is leased | ||||||||||
No. | • Building is owned • Land is leased | |||||||||
Kochi Site 1: 378, Myoken-cho, Susaki-shi, Kochi-ken, Japan Kochi Site 2: 1117-1, Otani, Susaki-shi, Kochi-ken, Japan | (including Kochi Site 1 and Kochi Site 2) | Kochi Site 1: April 2004 Kochi Site 2: January 2009 | Production of ingot | • Building is owned • Land is owned |
Location | Building Size | Commencement of Commercial Production | Primary Use | Owned or Leased | ||||||||
(in square meters) | ||||||||||||
Soma 2-2-21, Koyo, Soma-shi, Fukushima-ken, Japan | (including Soma Site 1 and Soma Site 2) | Soma Site 1: October 2007 Soma Site 2: February 2011 | Production of polysilicon | • Building is owned • Land is owned | ||||||||
Turanka 859/98d, Slatina, 627 00 Brno, Czech Republic | 17,765 | July 2010 | Manufacturing of solar module | • Building is leased (expires in December 2016) • Land is leased (expires in December 2016) | ||||||||
March 2011 | Production of wafer | • Building is leased • Land is leased |
(1) | Shared the same facility with L6A, L5C, L7A, L7B and L8A fabs |
OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
Operating Results |
2012 | 2013 | 2012 | 2013 | 2014 | |||||||||||||||||||||||||
NT$ | NT$ | US$ | NT$ | NT$ | NT$ | US$ | |||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||
Balance beginning of year | 451,026 | 458,081 | 15,356.4 | 451,026 | 458,081 | 595,767 | 18,853.4 | ||||||||||||||||||||||
Provision charged to revenue | 1,677,914 | 2,387,916 | 80,050.8 | 1,677,914 | 2,387,916 | 1,584,730 | 50,149.7 | ||||||||||||||||||||||
Utilized | (1,670,859 | ) | (2,250,230 | ) | (75,435.1 | ) | (1,670,859 | ) | (2,250,230 | ) | (1,355,142 | ) | (42,884.3 | ) | |||||||||||||||
Balance at end of year | 458,081 | 595,767 | 19,972.1 | 458,081 | 595,767 | 825,355 | 26,118.8 |
Year Ended December 31, | ||||||||||||||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||||||||||||||
NT$ | % | NT$ | % | NT$ | US$ | % | ||||||||||||||||||||||
(in millions, except for percentages) | ||||||||||||||||||||||||||||
Net revenue | 378,470.9 | 100.0 | 416,363.0 | 100.0 | 408,178.7 | 12,917.0 | 100.0 | |||||||||||||||||||||
Cost of sales | (391,593.8 | ) | (103.5 | ) | (382,378.9 | ) | (91.8 | ) | (359,668.1 | ) | (11,381.9 | ) | (88.1 | ) | ||||||||||||||
Gross profit (loss) | (13,122.9 | ) | (3.5 | ) | 33,984.1 | 8.2 | 48,510.6 | 1,535.1 | 11.9 | |||||||||||||||||||
Selling and distribution expenses | (6,377.2 | ) | (1.7 | ) | (7,470.0 | ) | (1.8 | ) | (7,799.0 | ) | (246.8 | ) | (1.9 | ) | ||||||||||||||
General and administrative expenses | (9,203.9 | ) | (2.4 | ) | (9,691.1 | ) | (2.4 | ) | (9,389.6 | ) | (297.1 | ) | (2.3 | ) | ||||||||||||||
Research and development expenses | (9,904.3 | ) | (2.6 | ) | (8,530.5 | ) | (2.0 | ) | (9,156.6 | ) | (289.8 | ) | (2.2 | ) | ||||||||||||||
Other income | 3,191.5 | 0.8 | 2,448.5 | 0.6 | 2,162.1 | 68.4 | 0.5 | |||||||||||||||||||||
Other gains and losses | (10,665.1 | ) | (2.8 | ) | (1,176.4 | ) | (0.3 | ) | (801.8 | ) | (25.3 | ) | (0.2 | ) | ||||||||||||||
Finance costs | (5,731.2 | ) | (1.5 | ) | (4,782.8 | ) | (1.1 | ) | (4,045.1 | ) | (128.0 | ) | (1.0 | ) | ||||||||||||||
Share of profit of equity-accounted investees | 319.0 | 0.1 | 454.2 | 0.1 | 499.8 | 15.8 | 0.1 | |||||||||||||||||||||
Profit (loss) before income tax | (51,494.1 | ) | (13.6 | ) | 5,236.0 | 1.3 | 19,980.4 | 632.3 | 4.9 | |||||||||||||||||||
Income tax expense | 1,124.0 | 0.3 | 1,359.1 | 0.3 | 3,243.2 | 102.6 | 0.8 | |||||||||||||||||||||
Profit (loss) for the year | (52,618.1 | ) | (13.9 | ) | 3,876.9 | 1.0 | 16,737.2 | 529.7 | 4.1 | |||||||||||||||||||
Other comprehensive income (loss) for the year, net of taxes | (1,583.8 | ) | (0.4 | ) | 2,998.5 | 0.7 | 2,177.7 | 68.9 | 0.5 | |||||||||||||||||||
Total comprehensive income (loss) for the year | (54,201.9 | ) | (14.3 | ) | 6,875.4 | 1.7 | 18,914.9 | 598.6 | 4.6 |
Year Ended December 31, | ||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||
NT$ | % | NT$ | US$ | % | ||||||||||||||||
(in millions, except for percentages) | ||||||||||||||||||||
Net revenue | 378,470.9 | 100.0 | 416,363.0 | 13,957.9 | 100.0 | |||||||||||||||
Cost of sales | (391,593.8 | ) | (103.5 | ) | (382,378.9 | ) | (12,818.6 | ) | (91.8 | ) | ||||||||||
Gross profit (loss) | (13,122.9 | ) | (3.5 | ) | 33,984.1 | 1,139.3 | 8.2 | |||||||||||||
Selling and distribution expenses | (6,377.2 | ) | (1.7 | ) | (7,470.0 | ) | (250.4 | ) | (1.8 | ) | ||||||||||
General and administrative expenses | (9,203.9 | ) | (2.4 | ) | (9,691.1 | ) | (324.9 | ) | (2.4 | ) | ||||||||||
Research and development expenses | (9,904.3 | ) | (2.6 | ) | (8,530.5 | ) | (286.0 | ) | (2.0 | ) |
Year Ended December 31, | ||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||
NT$ | % | NT$ | US$ | % | ||||||||||||||||
(in millions, except for percentages) | ||||||||||||||||||||
Other income | 3,191.5 | 0.8 | 2,448.5 | 82.1 | 0.6 | |||||||||||||||
Other gains and losses | (10,665.1 | ) | (2.8 | ) | (1,176.4 | ) | (39.4 | ) | (0.3 | ) | ||||||||||
Finance costs | (5,731.2 | ) | (1.5 | ) | (4,782.8 | ) | (160.3 | ) | (1.1 | ) | ||||||||||
Share of profit of equity-accounted investees | 319.0 | 0.1 | 454.2 | 15.2 | 0.1 | |||||||||||||||
Profit (loss) before income tax | (51,494.1 | ) | (13.6 | ) | 5,236.0 | 175.6 | 1.3 | |||||||||||||
Income tax expense | 1,124.0 | 0.3 | 1,359.1 | 45.6 | 0.3 | |||||||||||||||
Profit (loss) for the year | (52,618.1 | ) | (13.9 | ) | 3,876.9 | 130.0 | 1.0 | |||||||||||||
Other comprehensive income (loss) for the year, net of taxes | (1,583.8 | ) | (0.4 | ) | 2,998.5 | 100.5 | 0.7 | |||||||||||||
Total comprehensive income (loss) for the year | (54,201.9 | ) | (14.3 | ) | 6,875.4 | 230.5 | 1.7 |
For the Year Ended December 31 | ||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||
NT$ | NT$ | NT$ | US$ | |||||||||||||
(in millions) | ||||||||||||||||
Net revenue | ||||||||||||||||
Display business | 367,120.3 | 398,836.2 | 384,335.2 | 12,162.5 | ||||||||||||
Solar business | 11,350.6 | 17,526.8 | 23,843.5 | 754.5 | ||||||||||||
Total | 378,470.9 | 416,363.0 | 408,178.7 | 12,917.0 | ||||||||||||
Segment profit (loss) | ||||||||||||||||
Display business | (30,330.8 | ) | 12,017.9 | 24,422.5 | 772.8 | |||||||||||
Solar business | (8,277.5 | ) | (3,725.4 | ) | (2,257.1 | ) | (71.4 | ) | ||||||||
Total | (38,608.3 | ) | 8,292.5 | 22,165.4 | 701.4 |
For the Year Ended December 31 | ||||||||||||
2012 | 2013 | |||||||||||
NT$ | NT$ | US$ | ||||||||||
(in millions) | ||||||||||||
Net revenue | ||||||||||||
Display business | 367,120.3 | 398,836.2 | 13,370.3 | |||||||||
Solar business | 11,350.6 | 17,526.8 | 587.6 | |||||||||
Total | 378,470.9 | 416,363.0 | 13,957.9 | |||||||||
Segment profit (loss) | ||||||||||||
Display business | (30,330.8 | ) | 12,017.9 | 402.9 | ||||||||
Solar business | (8,277.5 | ) | (3,725.4 | ) | (124.9 | ) | ||||||
Total | (38,608.3 | ) | 8,292.5 | 278.0 | ||||||||
Liquidity and Capital Resources |
· | In October 2008, we entered into a NT$58.0 billion seven-year syndicated credit facility, for which the Bank of Taiwan acted as the agent bank, for the purpose of funding the construction and purchase of machinery and equipment at our first 8.5-generation fab. The agreement for this syndicated facility contains covenants that require us to maintain certain financial ratios. Our obligations under this credit facility are secured by certain of our equipment and machinery. As of December 31, |
· | In |
· | In October 2010, we issued US$800 million aggregate principal amount of zero coupon convertible bonds due 2015. We used the net proceeds to fund overseas equipment purchases. |
· | In January 2011, we entered into a NT$45.0 billion five-year syndicated credit facility, for which the Bank of Taiwan acted as the agent bank, for the purpose of funding medium-term working capital and repaying outstanding debts. The agreement for this syndicated facility contains covenants that require us to maintain certain financial ratios. Our obligations under this facility are secured by certain of our equipment and machinery. As of December 31, |
· | In April 2011, |
· | In October 2011, our subsidiary AUO Crystal Corp. entered into a NT$8.0 billion five-year syndicated credit facility, for which First Commercial Bank acted as the agent bank, for the purpose of funding the construction and the procurement of machinery and equipment for the solar and sapphire wafer factory. The agreement for this |
· | In January 2013, we entered into a NT$17.3 billion four-and-a-half-year syndicated credit facility, for which the Bank of Taiwan acted as the agent bank, for the purpose of repaying outstanding debts. The agreement for this syndicated facility contains covenants that require us to maintain certain financial ratios. Our obligations under this facility are secured by certain of our building, equipment and machinery. As of December 31, |
· | In October 2013, we entered into a NT$26.9 billion five-year syndicated credit facility, for which the Bank of Taiwan acted as the agent bank, for the purpose of repaying outstanding debts. The agreement for this syndicated facility contains covenants that require us to maintain certain financial ratios. Our obligations under this facility are secured by certain of our land, building, equipment and machinery. |
· | In August 2014, our subsidiary AFPD entered into a US$110 million four-and-a-half -year syndicated credit facility, for which Standard Chartered Bank (Hong Kong) Limited, acted as agent bank, for the purpose of repaying AFPD’s existing loan and financing AFPD’s general corporate purposes. The agreement for this syndicated facility is guaranteed by us. Under the agreement, AFPD and we are required to maintain certain financial ratios. As of December 31, 2014, US$35 million was outstanding under this credit facility. |
· | In September 2014, we entered into a NT$25.8 billion five-year syndicated credit facility, for which the Bank of Taiwan acted as the agent bank, for the purpose of repaying outstanding debts. The agreement for this syndicated facility contains covenants that require us to maintain certain financial ratios. Our obligations under this facility are secured by certain of our building, equipment and machinery. As of December 31, 2014, this credit facility had not been drawn down. |
Research and Development |
· | Showcased |
· | Presented |
· | Debuted 27- and 32-inch curved LCD panels featuring high contrast, wide viewing angle AMVA technology and narrow bezel designs; |
· | Initiated development of a new 35-inch 21:9 144 Hz Ultra Wide Curve (curvature 2000 mm) panel with wide viewing angle AMVA technology and narrow bezel designs to |
· | Presented |
Off-Balance Sheet Arrangements |
Tabular Disclosure of Contractual Obligations |
Payments Due by Period | Payments Due by Period | |||||||||||||||||||||||||||||||||||||||
Total | Less than 1 year | 1-3 years | 4-5 years | More than 5 years | Total | Less than 1 year | 1-3 years | 4-5 years | More than 5 years | |||||||||||||||||||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | NT$ | |||||||||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||||||||||||
Contractual Obligations | ||||||||||||||||||||||||||||||||||||||||
Long-term debt obligations: | ||||||||||||||||||||||||||||||||||||||||
Convertible bonds payable(1) | 20,608.8 | — | 20,608.8 | — | — | 15,532.0 | 15,532.0 | - | - | - | ||||||||||||||||||||||||||||||
Long-term borrowings(1) | 167,114.9 | 65,261.1 | 90,953.6 | 10,791.4 | 108.8 | 131,971.6 | 43,779.6 | 69,419.8 | 18,772.2 | - | ||||||||||||||||||||||||||||||
Subtotal | 187,723.7 | 65,261.1 | 111,562.4 | 10,791.4 | 108.8 | 147,503.6 | 59,311.6 | 69,419.8 | 18,772.2 | - | ||||||||||||||||||||||||||||||
Operating lease obligations(2) | 7,776.1 | 930.8 | 1,476.6 | 1,264.9 | 4,103.8 | 7,214.5 | 938.5 | 1,478.9 | 1,200.9 | 3,596.2 | ||||||||||||||||||||||||||||||
Purchase obligations(3) | 13,698.8 | 13,698.8 | — | — | — | 16,868.7 | 16,868.7 | - | - | - | ||||||||||||||||||||||||||||||
Other obligations(4) | 9,399.5 | 4,587.1 | 4,316.9 | 495.5 | — | 5,090.5 | 4,328.1 | 762.4 | - | - | ||||||||||||||||||||||||||||||
Total | 218,598.1 | 84,477.8 | 117,355.9 | 12,551.8 | 4,212.6 | 176,677.3 | 81,446.9 | 71,661.1 | 19,973.1 | 3,596.2 | ||||||||||||||||||||||||||||||
(1) | Includes estimated relevant interest payments in any given period in the future. See |
(2) | Represents our obligations to make lease payments to use the land on which our fabs and module-assembly facilities are located. |
(3) | Represents our significant outstanding purchase commitments for the machinery and equipment at our fabs. We have placed orders primarily related to the technological upgrade and the enhancement of value of capacity. |
(4) | Includes the U.S. DOJ case, certain settlement agreements regarding certain antitrust civil actions and certain alleged patent infringements with definitive payment terms as of December 31, |
DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES |
Directors and Senior Management |
Name | Age | Position | Term Expires | Years On Our Board | Principal Business Activities Performed Outside Our Company | |||
Kuen-Yao (K.Y.) Lee | 63 | Chairman | 2016 | 19 | · Chairman, Qisda Corporation · Director, Darfon Corporation · Director, BenQ Materials Corp. | |||
Shuang-Lang (Paul) Peng | 57 | Director and President | 2016 | 5 | · N/A | |||
Cheng-Yih Lin | 63 | Director | 2016 | 3 | · Chairman, Daxin Materials Corporation | |||
Ronald Chwang(1) | 67 | Director | 2016 | 7 | · Chairman, iD Ventures America, Inc. · Director, CoAdna Holding, Inc. | |||
Vivien Huey-Juan Hsieh | 62 | Independent Director | 2016 | 11 | · Supervisor, Chief Telecom Inc. | |||
Mei-Yueh Ho | 64 | Independent Director | 2016 | 5 | · Independent Director and member of Compensation Committee, Bank of Kaohsiung, Ltd. · Independent Director and member of Compensation Committee, Taiwan Pelican Express Co., Ltd. · Independent Director and member of Compensation Committee, KINPO Electronics Inc. | |||
Ding-Yuan Yang | 67 | Independent Director | 2016 | 5 | · Chairman, UniSVR Global Information Technology Corp. · Member of Compensation Committee, Opnet Technologies Co., Ltd. | |||
Tain-Jy Chen | 62 | Independent Director | 2016 | 2 | · Professor, National Taiwan University · Independent Director and member of Compensation Committee, TECO Electric & Machinery Co., Ltd. · Independent Director and member of Compensation Committee, Chunghwa Telecom Co., Ltd. |
Name | Age | Position | Term Expires | Years On Our Board | Principal Business Activities Performed Outside Our Company | |||||
Kuen-Yao (K.Y.) Lee | 62 | Chairman | 2016 | 18 | · Chairman, Qisda Corporation · Director, Darfon Corporation · Director, BenQ Materials Corporation | |||||
Shuang-Lang (Paul) Peng | 55 | Director and President | 2016 | 4 | · N/A | |||||
Cheng-Yih Lin | 62 | Director | 2016 | 2 | · Chairman, Daxin Materials Corporation | |||||
Ronald Jen-Chuan Chwang(1) | 66 | Director | 2016 | 6 | · Chairman, iD Ventures America, Inc. · Director, CoAdna Holding, Inc. | |||||
Vivien Huey-Juan Hsieh | 61 | Independent Director | 2016 | 10 | · Supervisor, Chief Telecom Inc. | |||||
Mei-Yueh Ho | 63 | Independent Director | 2016 | 4 | · Independent Director and member of Compensation Committee, Bank of Kaohsiung, Ltd. · Independent Director and member of Compensation Committee, Taiwan Pelican Express Co., Ltd. · Independent Director and member of Compensation Committee, KINPO Electronics Inc. | |||||
Ding-Yuan Yang | 66 | Independent Director | 2016 | 4 | · Chairman, UniSVR Global Information Technology Corp. · Member of Compensation Committee, Opnet Technologies Co., Ltd. | |||||
Tain-Jy Chen | 61 | Independent Director | 2016 | 1 | · Professor, National Taiwan University · Independent Director and member of Compensation Committee, TECO Electric & Machinery Co., Ltd. · Independent Director and member of Compensation Committee, Chunghwa Telecom Co., Ltd. | |||||
Chin-Bing (Philip) Peng | 61 | Independent Director | 2016 | 1 | · Director and President, iD SoftCapital · Director, ACER Incorporated. · Director, Wistron NeWeb Corporation · Director, AOPEN Inc. · Director, Wistron Information Technology & Services Corp. |
Name | Age | Position | Term Expires | Years On Our Board | Principal Business Activities Performed Outside Our Company | |||
Chin-Bing (Philip) Peng | 62 | Independent Director | 2016 | 2 | · Director and President, iD SoftCapital · Director, ACER Incorporated. · Director, Wistron NeWeb Corporation · Director, AOPEN Inc. · Director, Wistron Information Technology & Services Corp. |
(1) | Representing Qisda. |
Name | Age | Position | Years With Us | |||
Shuang-Lang (Paul) Peng | 55 | President | 18 | |||
Andy Yang | 45 | Chief Financial Officer | 12 | |||
F.C. Hsiang | 55 | Executive Vice President and General Manager of the Mobile Solution Business Group | 12 | |||
Kuo-Hsin (Michael) Tsai | 50 | Senior Vice President and General Manager of the Video Solution Business Group | 16 | |||
Chien-Pin (James) Chen | 43 | Vice President and General Manager of the Solar Business Group | 14 |
Name | Age | Position | Years With Us | |||
Shuang-Lang (Paul) Peng | 57 | President | 19 | |||
Andy Yang | 46 | Chief Financial Officer | 13 | |||
Fwu-Chyi (F.C.) Hsiang | 56 | Executive Vice President and General Manager of the Mobile Solution Business Group | 16 | |||
Kuo-Hsin (Michael) Tsai | 51 | Senior Vice President and General Manager of the Video Solution Business Group | 17 | |||
Chien-Pin (James) Chen | 44 | Vice President and General Manager of the Solar Business Group | 15 |
Compensation |
Board Practices |
Employees |
As of December 31, | As of December 31, | |||||||||||||||||||
Function | 2012 | 2013 | 2012 | 2013 | 2014 | |||||||||||||||
Production | 48,822 | 49,851 | 48,822 | 49,851 | 53,289 | |||||||||||||||
Technical(1) | 8,987 | 8,707 | 8,987 | 8,707 | 9,277 | |||||||||||||||
Sales and marketing | 971 | 992 | 971 | 992 | 958 | |||||||||||||||
Management and administration | 3,777 | 3,949 | 3,777 | 3,949 | 4,309 | |||||||||||||||
Total | 62,557 | 63,499 | 62,557 | 63,499 | 67,833 | (2) |
(1) | Includes research and development personnel. |
(2) | The increase in our employees in 2014 compared to that of 2013 is mainly due to the merger of BriView Corp. and Forhouse, with the latter as the surviving company and renamed as Darwin Precisions Corporation. |
As of December 31, | As of December 31, | |||||||||||||||||||
Location | 2012 | 2013 | 2012 | 2013 | 2014 | |||||||||||||||
ROC | 22,936 | 23,835 | 22,936 | 23,835 | 24,155 | |||||||||||||||
PRC | 37,730 | 37,347 | 37,730 | 37,347 | 41,474 | |||||||||||||||
Others | 1,891 | 2,317 | 1,891 | 2,317 | 2,204 | |||||||||||||||
Total | 62,557 | 63,499 | 62,557 | 63,499 | 67,833 |
Share Ownership |
Name | Number of Shares Beneficially Owned | Percentage of Shares Beneficially Owned | ||||||
Kuen-Yao (K.Y.) Lee, Chairman | 11,963,918 | (1) | * | |||||
Shuang-Lang (Paul) Peng, Director, President | 3,044,439 | (2) | * | |||||
Cheng-Yih Lin, Director | 1,770,785 | * | ||||||
Ronald Chwang, Director** | 663,723,570 | (3) | 6.9% | |||||
Vivien Huey-Juan Hsieh, Independent Director | — | — | ||||||
Mei-Yuen Ho, Independent Director | — | — | ||||||
Ding-Yuan Yang, Independent Director | — | — | ||||||
Tain-Jy Chen, Independent Director | — | — | ||||||
Chin-Bing (Philip) Peng, Independent Director | 96,670 | * | ||||||
Andy Yang, Chief Financial Officer | 603,752 | * | ||||||
Fwu-Chyi (F.C.) Hsiang, Executive Vice President and General Manager of the Mobile Solution Business Group | 4,870,521 | (4) | * | |||||
Kuo-Hsin (Michael) Tsai, Senior Vice President and General Manager of the Video Solution Business Group | 1,832,516 | (5) | * |
Name | Number of Shares Beneficially Owned | Percentage of Shares Beneficially Owned | |||||
Kuen-Yao (K.Y.) Lee, Chairman | 11,963,918 | (1) | * | ||||
Shuang-Lang (Paul) Peng, Director, President | 2,875,439 | (2) | * | ||||
Cheng-Yih Lin, Director | 1,770,785 | * | |||||
Ronald Jen-Chuan Chwang, Director** | 663,723,570 | (3) | 6.9% | ||||
Vivien Huey-Juan Hsieh, Independent Director | — | — | |||||
Mei-Yuen Ho, Independent Director | — | — | |||||
Ding-Yuan Yang, Independent Director | — | — | |||||
Tain-Jy Chen, Independent Director | — | — | |||||
Chin-Bing (Philip) Peng, Independent Director | 96,670 | * | |||||
Andy Yang, Chief Financial Officer | 427,259 | * | |||||
F.C. Hsiang, Executive Vice President and General Manager of the Mobile Solution Business Group | 4,641,733 | (4) | * | ||||
Kuo-Hsin (Michael) Tsai, Senior Vice President and General Manager of the Video Solution Business Group | 1,842,516 | (5) | * | ||||
Chien-Pin (James) Chen, Vice President and General Manager of the Solar Business Group | 255,759 | * |
Name | Number of Shares Beneficially Owned | Percentage of Shares Beneficially Owned | ||||||
Chien-Pin (James) Chen, Vice President and General Manager of the Solar Business Group | 255,759 | * |
* | The number of common shares beneficially held is less than 1% of our total outstanding common shares. |
** | Representative of Qisda. |
(1) | Including 10,512,153 shares directly held and |
(2) | Including |
(3) | Including 124,950 shares directly held and 663,598,620 shares beneficially owned as a representative of Qisda. |
(4) | Including |
(5) | Including |
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
Major Shareholders |
Name of Beneficial Owner | Number of Shares Beneficially Owned | Percentage of Shares Beneficially Owned | Percentage of Shares Beneficially Owned (Fully Diluted) | |||||||||
Qisda 157, Shan-Ying Road, Gueishan, Taoyuan 333, Taiwan, ROC | 663,598,620* | 6.9% | 6.9% | |||||||||
All directors as a group(1) | 680,599,382 | 7.1% | 7.1% |
Name of Beneficial Owner | Number of Shares Beneficially Owned | Percentage of Shares Beneficially Owned | Percentage of Shares Beneficially Owned (Fully Diluted) | |||
Qisda 157, Shan-Ying Road, Gueishan, Taoyuan 333, Taiwan, ROC | 663,598,620* | 6.9% | 6.9% | |||
Quanta Computer Inc. 211, Wen Hwa 2nd Road, Kuei Shan, Taoyuan 33377, Taiwan, ROC | 443,930,307** | 4.6% | 4.6% | |||
All directors as a group(1) | 680,430,382 | 7.1% | 7.1% |
* | According to the Schedule 13G filed with the SEC on |
(1) | Calculated as the sum of: (a) with respect to directors who are serving in their personal capacity, the number of shares beneficially held by such director and (b) with respect to directors who are serving in the capacity as legal representatives, the number of shares owned by such institutional or corporate shareholder for which such director is a legal representative and the number of shares beneficially held by such director in personal capacity. This information is as of February 28, |
Related Party Transactions |
Net Sales | Accounts Receivables | Net Revenue | Accounts Receivables | |||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | As of December 31, | For the Year Ended December 31, | As of December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2014 | 2013 | 2014 | ||||||||||||||||||||||||||||||||||||||||||||
(NT$ in millions) | (US$ in millions) | (NT$ in millions) | (US$ in millions) | (NT$ in millions) | (US$ in millions) | (NT$ in millions) | (US$ in millions) | |||||||||||||||||||||||||||||||||||||||||||||
Associates | 33,927.3 | 28,397.7 | 952.0 | 5,805.5 | 2,591.0 | 86.9 | 33,927.3 | 28,397.7 | 18,187.6 | 575.6 | 2,591.0 | 3,253.0 | 103.0 | |||||||||||||||||||||||||||||||||||||||
Joint Ventures | 4,162.4 | 4,116.5 | 138.0 | 385.6 | 441.9 | 14.8 | 4,162.4 | 4,116.5 | 4,484.1 | 141.9 | 441.9 | 360.5 | 11.4 | |||||||||||||||||||||||||||||||||||||||
38,089.7 | 32,514.2 | 1,090.0 | 6,191.1 | 3,032.9 | 101.7 | 38,089.7 | 32,514.2 | 22,671.7 | 717.5 | 3,032.9 | 3,613.5 | 114.4 |
Net Purchases | Accounts Payables | Net Purchases | Accounts Payables | |||||||||||||||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, | As of December 31, | For the Year Ended December 31, | As of December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||
2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2014 | 2013 | 2014 | ||||||||||||||||||||||||||||||||||||||||||||
(NT$ in millions) | (US$ in millions) | (NT$ in millions) | (US$ in millions) | (NT$ in millions) | (US$ in millions) | (NT$ in millions) | (US$ in millions) | |||||||||||||||||||||||||||||||||||||||||||||
Associates | 54,358.3 | 53,673.9 | 1,799.3 | 15,725.4 | 14,861.1 | 498.2 | 54,358.3 | 53,673.9 | 42,772.4 | 1,353.6 | 14,861.1 | 11,144.6 | 352.7 | |||||||||||||||||||||||||||||||||||||||
Joint Ventures | 531.3 | 730.1 | 24.5 | 89.5 | 91.5 | 3.1 | 531.3 | 730.1 | 2,854.7 | 90.3 | 91.5 | 319.3 | 10.1 | |||||||||||||||||||||||||||||||||||||||
54,889.6 | 54,404.0 | 1,823.8 | 15,814.9 | 14,952.6 | 501.3 | 54,889.6 | 54,404.0 | 45,627.1 | 1,443.9 | 14,952.6 | 11,463.9 | 362.8 |
· | BenQ Corporation (“BenQ”) |
· | AUO SunPower Sdn. Bhd. (“AUSP”) |
· |
· | Forhouse Corporation (“Forhouse”) |
· | BenQ Materials Corp. (“BMC”) |
· | Qisda Corporation (“Qisda”) |
· | Raydium Semiconductor Corporation (“Raydium”) |
Interests of Experts and Counsel |
FINANCIAL INFORMATION |
Consolidated Statements and Other Financial Information |
8.A.1. | See Item 18 for our audited consolidated financial statements and pages F-1 through F-94. |
See Item 18 for our audited consolidated financial statements, which cover the last three financial years. |
See page F-1 for the audit report of our independent auditors, entitled “Report of Independent Registered Public Accounting Firm.” |
Not applicable. |
Not applicable. |
See “Item 4. Information on the Company—4.B. Business Overview—Customers, Sales and Marketing” for the amount of our export sales. |
Litigation |
Dividends and Dividend Policy |
· | profit sharing to employees: no less than 5% |
· | remuneration of directors: no more than 1% |
· | all or a portion of the remaining balance is |
Significant Changes |
THE OFFER AND LISTING |
Offering and Listing Details |
Taiwan Stock Exchange | New York Stock Exchange(1) | Taiwan Stock Exchange | New York Stock Exchange(1) | |||||||||||||||||||||||||||||||||||||||||||||
Closing price per Common Share | Average Daily Trading Volume | Closing Price per ADS | Average Daily Trading Volume | Closing price per Common Share | Average Daily Trading Volume | Closing Price per ADS | Average Daily Trading Volume | |||||||||||||||||||||||||||||||||||||||||
High | Low | High | Low | High | Low | High | Low | |||||||||||||||||||||||||||||||||||||||||
(NT$) | (NT$) | (in thousands of Common Shares) | (US$) | (US$) | (in thousands of ADSs) | (NT$) | (NT$) | (in thousands of Common Shares) | (US$) | (US$) | (in thousands of ADSs) | |||||||||||||||||||||||||||||||||||||
2009 | 38.90 | 23.05 | 62,016.6 | 12.12 | 6.66 | 3,999.6 | ||||||||||||||||||||||||||||||||||||||||||
2010 | 42.00 | 27.30 | 49,916.2 | 13.25 | 8.58 | 2,850.0 | 42.00 | 27.30 | 49,916.2 | 13.25 | 8.58 | 2,850.0 | ||||||||||||||||||||||||||||||||||||
2011 | 30.35 | 11.90 | 50,191.7 | 10.44 | 3.77 | 2,528.8 | 30.35 | 11.90 | 50,191.7 | 10.44 | 3.77 | 2,528.8 | ||||||||||||||||||||||||||||||||||||
2012 | 17.40 | 8.21 | 77,985.9 | 5.89 | 2.74 | 1,190.7 | 17.40 | 8.21 | 77,985.9 | 5.89 | 2.74 | 1,190.7 | ||||||||||||||||||||||||||||||||||||
2013 | 14.00 | 8.44 | 81,594.3 | 4.89 | 2.82 | 1,146.2 | ||||||||||||||||||||||||||||||||||||||||||
First Quarter | 17.40 | 12.85 | 81,200.6 | 5.89 | 4.25 | 1,459.0 | 13.95 | 11.10 | 112,756.4 | 4.78 | 3.81 | 1,262.5 | ||||||||||||||||||||||||||||||||||||
Second Quarter | 15.20 | 11.10 | 41,134.6 | 5.03 | 3.67 | 1,013.9 | 14.00 | 10.10 | 96,666.5 | 4.89 | 3.29 | 1,429.2 | ||||||||||||||||||||||||||||||||||||
Third Quarter | 12.15 | 8.21 | 80,767.0 | 4.07 | 2.74 | 999.1 | 11.85 | 10.35 | 60,700.6 | 3.89 | 3.35 | 874.0 | ||||||||||||||||||||||||||||||||||||
Fourth Quarter | 14.15 | 10.20 | 108,096.5 | 4.81 | 3.35 | 1,297.0 | 11.10 | 8.44 | 61,174.4 | 3.71 | 2.82 | 1,028.3 | ||||||||||||||||||||||||||||||||||||
2013 | 14.00 | 8.44 | 81,594.3 | 4.89 | 2.82 | 1,146.2 | ||||||||||||||||||||||||||||||||||||||||||
2014 | 16.55 | 8.80 | 74,525.9 | 5.42 | 2.73 | 480.1 | ||||||||||||||||||||||||||||||||||||||||||
First Quarter | 13.95 | 11.10 | 112,756.4 | 4.78 | 3.81 | 1,262.5 | 10.75 | 8.80 | 62,801.6 | 3.48 | 2.73 | 416.9 | ||||||||||||||||||||||||||||||||||||
Second Quarter | 14.00 | 10.10 | 96,666.5 | 4.89 | 3.29 | 1,429.2 | 12.65 | 10.90 | 77,362.5 | 4.19 | 3.62 | 504.4 | ||||||||||||||||||||||||||||||||||||
Third Quarter | 11.85 | 10.35 | 60,700.6 | 3.89 | 3.35 | 874.0 | 14.90 | 12.60 | 81,464.5 | 4.97 | 4.16 | 300.3 | ||||||||||||||||||||||||||||||||||||
Fourth Quarter | 11.10 | 8.44 | 61,174.4 | 3.71 | 2.82 | 1,028.3 | 16.55 | 11.60 | 75,080.6 | 5.42 | 3.82 | 696.3 | ||||||||||||||||||||||||||||||||||||
September | 11.85 | 11.10 | 47,284.0 | 3.89 | 3.65 | 569.4 | 14.85 | 12.85 | 62,876.7 | 4.95 | 4.16 | 342.9 | ||||||||||||||||||||||||||||||||||||
October | 11.10 | 9.60 | 62,291.8 | 3.71 | 3.16 | 1,742.1 | 14.40 | 11.60 | 71,662.5 | 4.79 | 3.82 | 529.2 | ||||||||||||||||||||||||||||||||||||
November | 9.60 | 8.44 | 82,157.7 | 3.19 | 2.82 | 840.8 | 14.90 | 13.80 | 74,770.2 | 4.86 | 4.54 | 799.8 | ||||||||||||||||||||||||||||||||||||
December | 9.52 | 8.96 | 40,027.4 | 3.12 | 2.97 | 452.5 | 16.55 | 14.10 | 78,472.5 | 5.42 | 4.57 | 781.6 | ||||||||||||||||||||||||||||||||||||
2014 (through March 14, 2014) | 10.30 | 8.80 | 57,826.9 | 3.40 | 2.73 | 370.1 | ||||||||||||||||||||||||||||||||||||||||||
2015 (through March 13, 2015) | 18.90 | 15.05 | 105,128.8 | 6.01 | 4.66 | 2,652.2 | ||||||||||||||||||||||||||||||||||||||||||
January | 9.58 | 9.01 | 44,824.1 | 3.15 | 2.76 | 345.7 | 18.90 | 17.20 | 122,411.5 | 6.01 | 5.10 | 2,350.4 | ||||||||||||||||||||||||||||||||||||
February | 10.30 | 8.80 | 72,458.6 | 3.33 | 2.73 | 408.4 | 17.40 | 16.55 | 85,395.1 | 5.59 | 5.23 | 3,024.7 | ||||||||||||||||||||||||||||||||||||
March (through March 14, 2014) | 10.20 | 9.89 | 56,358.1 | 3.40 | 3.18 | 348.4 | ||||||||||||||||||||||||||||||||||||||||||
March (through March 13, 2015) | 16.00 | 15.05 | 96,204.5 | 5.06 | 4.66 | 2,548.1 |
(1) | Each ADS represents the right to receive 10 common shares. |
Plan of Distribution |
Markets |
Selling Shareholders |
Dilution |
Expenses of the Issue |
ADDITIONAL INFORMATION |
Share Capital |
Memorandum and Articles of Association |
· | any amendment to our articles of incorporation; |
· | our dissolution or amalgamation; |
· | a merger or spin-off; |
· | transfers of the whole or a substantial part of our business or properties; |
· | the acquisition of the entire business or properties of another company which would have a significant impact on our operations; |
· | execution, modification or termination of any contracts regarding leasing of all business or joint operations or mandate of our business to other persons; |
· | the distribution of any stock dividend; or |
· | the removal of directors. |
· | profit sharing to employees: no less than 5% |
· | remuneration of directors: no more than 1% |
· | all or a portion of the remaining balance is |
· | to transfer shares to our employees; |
· | to facilitate conversion arising from bonds with warrants, preferred shares with warrants, convertible bonds, convertible preferred shares or certificates of warrants (collectively, the “Convertible Securities”) issued by our company into shares; and |
· | if necessary, to maintain our credit and our shareholders’ equity; provided that the shares so purchased shall be cancelled thereafter. |
· | Within 30 days from the date on which a shareholders’ resolution is adopted, a shareholder may file a lawsuit to annul a shareholders’ resolution if the procedure for convening a shareholders’ meeting or the method of resolution violates any law or regulation or our articles of incorporation. |
· | If the substance of a resolution adopted at a shareholders’ meeting contradicts any applicable law or regulation or our articles of incorporation, a shareholder may bring a suit to determine the validity of such resolution. |
· | Shareholders who have continuously held 3% or more of the total number of issued and outstanding shares for a period of one year or longer may request in writing that an audit committee institute an action against a director on our behalf. In case the audit committee fails to institute an action within 30 days after receiving such request, the shareholders may institute an action on our behalf. In the event that shareholders institute an action, a court may, upon motion of the defendant, order such shareholders to furnish appropriate security. |
· | In the event that any director, officer or shareholder who holds more than 10% of our issued and outstanding shares and their respective spouse and minor children and/or nominees sells shares within six months after the acquisition of such shares, or repurchases the shares within six months after the sale, we may make a claim for recovery of any profits realized from the sale and purchase. If our board of directors or our audit committee fails to make a claim for recovery, any shareholder may request that our board of directors or our audit committee exercise the right of claim within 30 days. In the event our directors or audit committee fail to exercise such right during such 30-day period, such requesting shareholder will have the right to make a claim for such recovery on our behalf. Our directors and audit committee will be jointly and severally liable for damages suffered by us as a result of their failure to exercise the right of claim. |
Material Contracts |
Exchange Controls |
Taxation |
· | you are an individual and you are not physically present in the ROC for 183 days or more during any calendar year; or |
· | you are an entity and you are organized under the laws of a jurisdiction other than the ROC and have no fixed place of business or other permanent establishment or business agent in the ROC. |
· | a citizen or individual resident of the United States; |
· | a corporation, or other entity taxable as a corporation, created or organized in or under the laws of the United States or any state or any political subdivision thereof; |
· | an estate the income of which is subject to U.S. federal income taxation regardless of its source; or |
· | a trust, if (1) a U.S. court can exercise primary supervision over the trust’s administration and one or more United States persons (within the meaning of the Code, as defined below) are authorized to control all substantial decisions of the trust or (2) the trust has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person. |
· | dealers and traders in securities who use a mark-to-market method of tax accounting; |
· | certain financial institutions; |
· | tax-exempt entities, including “individual retirement accounts”; |
· | entities classified as partnerships for U.S. federal income tax purposes; |
· | persons holding ADSs or shares as part of a hedge, straddle, wash sale, conversion transaction or integrated transaction or persons entering into a constructive sale with respect to the ADSs or shares; |
· | persons that own or are deemed to own 10% or more of our voting stock; |
· | persons whose functional currency for U.S. federal income tax purposes is not the U.S. dollar; |
· | persons who acquired ADSs or shares pursuant to the exercise of any employee stock option or otherwise as compensation; |
· | persons holding ADSs or shares through a partnership or other pass-through entity; or |
· | persons holding ADSs or shares in connection with a trade or business conducted outside of the United States. |
Dividends and Paying Agents |
Statement by Experts |
Documents on Display |
Subsidiary Information |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Expected Maturity Date | Fair Value at December 31, 2014 | |||||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Certificates of Deposit: | ||||||||||||||||||||||||||||||||
Fixed rate (US$) | 213,622 | — | — | — | — | — | 213,622 | 213,622 | ||||||||||||||||||||||||
Average interest rate | 0.900 | % | — | — | — | — | — | 0.900 | % | — | ||||||||||||||||||||||
Fixed rate (NT$) | 5,728,000 | — | — | — | — | — | 5,728,000 | 5,728,000 | ||||||||||||||||||||||||
Average interest rate | 0.671 | % | — | — | — | — | — | 0.671 | % | — | ||||||||||||||||||||||
Fixed rate (JPY) | 11,147,340 | — | — | — | — | — | 11,147,340 | 11,147,340 | ||||||||||||||||||||||||
Average interest rate | 0.185 | % | — | — | — | — | — | 0.185 | % | — | ||||||||||||||||||||||
Fixed rate (CNY) | 2,380,458 | — | — | — | — | — | 2,380,458 | 2,380,458 | ||||||||||||||||||||||||
Average interest rate | 2.190 | % | — | — | — | — | — | 2.190 | % | — | ||||||||||||||||||||||
Fixed rate (EUR) | 20,000 | — | — | — | — | — | 20,000 | 20,000 | ||||||||||||||||||||||||
Average interest rate | 0.125 | % | — | — | — | — | — | 0.125 | % | — | ||||||||||||||||||||||
Fixed Rate (CZK) | 20,000 | — | — | — | — | — | 20,000 | 20,000 | ||||||||||||||||||||||||
Average interest rate | 0.070 | % | — | — | — | — | — | 0.070 | % | — | ||||||||||||||||||||||
Liabilities Bonds: | ||||||||||||||||||||||||||||||||
Unsecured (NT$) | 13,157,477 | — | — | — | — | — | 13,157,477 | 14,732,296 | ||||||||||||||||||||||||
Fixed rate | 15.34 | %(1) | — | — | — | — | — | 15.34 | % | — | ||||||||||||||||||||||
Long-term Loans: | ||||||||||||||||||||||||||||||||
Fixed rate (NT$) | 285,715 | 3,140 | — | — | — | — | 288,855 | 288,855 | ||||||||||||||||||||||||
Average interest rate | �� | 2.860 | % | 1.450 | % | — | — | — | — | 2.845 | % | — | ||||||||||||||||||||
Variable rate (NT$) | 41,221,348 | 47,393,644 | 20,114,327 | 12,077,730 | 6,466,647 | — | 127,273,696 | 127,273,696 | ||||||||||||||||||||||||
Average interest rate | 2.333 | % | 2.608 | % | 3.151 | % | 3.755 | % | 4.644 | % | — | 2.680 | % | — | ||||||||||||||||||
Interest Rate Swaps (2) | ||||||||||||||||||||||||||||||||
Variable to fixed (NT$) | 960,000 | 1,280,000 | 1,760,000 | — | — | — | 4,000,000 | (7,093 | ) | |||||||||||||||||||||||
Pay rate | 1.090 | % | 1.090 | % | 1.090 | % | — | — | — | 1.090 | % | — |
(1) | Unless previously redeemed, purchased and cancelled, or converted, the interest rate of ECB4 on maturity is 15.34%. |
(2) | 90 days Taipei Money Market Secondary fixing rate settled quarterly (0.888% on December 31, 2014). |
Expected Maturity Date | Fair Value at December 31, 2013 | |||||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Certificates of Deposit: | ||||||||||||||||||||||||||||||||
Fixed rate (US$) | 392,565 | — | — | — | — | — | 392,565 | 392,565 | ||||||||||||||||||||||||
Average interest rate | 0.955 | % | — | — | — | — | — | 0.955 | % | — | ||||||||||||||||||||||
Fixed rate (NT$) | 2,320,000 | — | — | — | — | — | 2,320,000 | 2,320,000 | ||||||||||||||||||||||||
Average interest rate | 0.419 | % | — | — | — | — | — | 0.419 | % | — | ||||||||||||||||||||||
Fixed rate (JPY) | 28,530,170 | — | — | — | — | — | 28,530,170 | 28,530,170 | ||||||||||||||||||||||||
Average interest rate | 0.419 | % | — | — | — | — | — | 0.419 | % | — | ||||||||||||||||||||||
Fixed rate (CNY) | 1,429,437 | — | — | — | — | — | 1,429,437 | 1,429,437 | ||||||||||||||||||||||||
Average interest rate | 1.834 | % | — | — | — | — | — | 1.834 | % | — | ||||||||||||||||||||||
Fixed rate (SGD) | 450 | — | — | — | — | — | 450 | 450 | ||||||||||||||||||||||||
Average interest rate | 0.220 | % | — | — | — | — | — | 0.220 | % | — | ||||||||||||||||||||||
Liabilities Bonds: | ||||||||||||||||||||||||||||||||
Unsecured (NT$) | — | 17,867,850 | — | — | — | — | 17,867,850 | 18,477,322 | ||||||||||||||||||||||||
Fixed rate | — | 15.34 | %(1) | — | — | — | — | — | — | |||||||||||||||||||||||
Long-term Loans: | ||||||||||||||||||||||||||||||||
Fixed rate (NT$) | 571,429 | 323,808 | 3,373 | — | — | — | 898,610 | 903,821 | ||||||||||||||||||||||||
Average interest rate | 2.809 | % | 2.695 | % | 1.450 | % | — | — | — | 2.775 | % | — | ||||||||||||||||||||
Variable rate (NT$) | 62,191,595 | 44,033,168 | 44,138,347 | 10,215,229 | 414,732 | 106,296 | 161,099,367 | 161,099,367 | ||||||||||||||||||||||||
Average interest rate | 2.049 | % | 2.270 | % | 2.490 | % | 3.306 | % | 4.730 | % | 3.274 | % | 2.228 | % | — | |||||||||||||||||
Interest Rate Swaps (2) | ||||||||||||||||||||||||||||||||
Variable to fixed (NT$) | 7,111,111 | 960,000 | 1,280,000 | 1,760,000 | — | — | 11,111,111 | (17,062 | ) | |||||||||||||||||||||||
Pay rate | 1.244 | % | 1.090 | % | 1.090 | % | 1.090 | % | — | — | 1.244 | % | — |
(1) | Unless previously redeemed, purchased and cancelled, or converted, the interest rate of ECB4 on maturity is 15.34%. |
(2) | 90 days Taipei Money Market Secondary fixing rate settled quarterly (0.9% on December 31, 2013). |
Expected Maturity Date | Fair Value at December 31, 2012 | |||||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total | ||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Certificates of Deposit: | ||||||||||||||||||||||||||||||||
Fixed rate (US$) | 609,924 | — | — | — | — | — | 609,924 | 609,924 | ||||||||||||||||||||||||
Average interest rate | 0.479 | % | — | — | — | — | — | 0.479 | % | — | ||||||||||||||||||||||
Fixed rate (NT$) | 2,500,000 | — | — | — | — | — | 2,500,000 | 2,500,000 | ||||||||||||||||||||||||
Average interest rate | 0.575 | % | — | — | — | — | — | 0.575 | % | — | ||||||||||||||||||||||
Fixed rate (JPY) | 33,336,478 | — | — | — | — | — | 33,336,478 | 33,336,478 | ||||||||||||||||||||||||
Average interest rate | 0.380 | % | — | — | — | — | — | 0.380 | % | — | ||||||||||||||||||||||
Fixed rate (CNY) | 1,477,677 | — | — | — | — | — | 1,477,677 | 1,477,677 | ||||||||||||||||||||||||
Average interest rate | 1.880 | % | — | — | — | — | — | 1.880 | % | — | ||||||||||||||||||||||
Fixed rate (EUR) | 53,000 | — | — | — | — | — | 53,000 | 53,000 | ||||||||||||||||||||||||
Average interest rate | 0.050 | % | — | — | — | — | — | 0.050 | % | — | ||||||||||||||||||||||
Liabilities Bonds: | ||||||||||||||||||||||||||||||||
Unsecured (NT$) | — | — | 20,388,200 | — | — | — | 20,388,200 | 18,292,497 | ||||||||||||||||||||||||
Fixed rate | — | — | 15.34 | %(1) | — | — | — | 5.113 | % | — | ||||||||||||||||||||||
Long-term Loans: | ||||||||||||||||||||||||||||||||
Fixed rate (NT$) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Average interest rate | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Variable rate (NT$) | 45,490,589 | 60,902,594 | 45,268,005 | 39,127,792 | 2,119,432 | — | 192,908,412 | 192,932,107 | ||||||||||||||||||||||||
Average interest rate | 2.276 | % | 2.284 | % | 2.377 | % | 2.460 | % | 4.087 | % | — | 2.322 | % | — | ||||||||||||||||||
Interest Rate Swaps (2) | ||||||||||||||||||||||||||||||||
Variable to fixed (NT$) | — | 14,222,222 | — | — | — | — | 14,222,222 | (58,547 | ) | |||||||||||||||||||||||
Pay rate | — | 1.331 | % | — | — | — | — | 1.331 | % | — |
December 31, | ||
(in thousands) | ||
Contracts to sell EUR/Buy JPY | ||
Aggregate contract amount | ||
Average contractual exchange rate | ||
Contracts to sell EUR/Buy CZK | ||
Aggregate contract amount | ||
Average contractual exchange rate | ||
Contracts to sell NT$/Buy JPY | ||
Aggregate contract amount | NT$ | |
Average contractual exchange rate | ||
Contracts to sell US$/Buy JPY | ||
Aggregate contract amount | US$ | |
Average contractual exchange rate | ||
Contracts to sell US$/Buy CNY | ||
Aggregate contract amount | US$ | |
Average contractual exchange rate | ||
Contracts to sell US$/Buy SGD | ||
Aggregate contract amount | US$ | |
Average contractual exchange rate | ||
Contracts to sell US$/Buy MYR | ||
Aggregate contract amount | US$940 | |
Average contractual exchange rate | MYR3.44 per US$ | |
Contracts to sell US$/Buy NTD | ||
Aggregate contract amount | US$ | |
Average contractual exchange rate | ||
Contracts to sell CNY/Buy US$ | ||
Aggregate contract amount | CNY93,195 | |
Average contractual exchange rate | US$0.16 per CNY | |
Contracts to sell EUR/Buy NTD | ||
Aggregate contract amount | EUR9,500 | |
Average contractual exchange rate | NTD38.87 per EUR | |
Contracts to sell JPY/Buy US$ | ||
Aggregate contract amount | JPY336,496 | |
Average contractual exchange rate | US$0.01 per JPY | |
Contracts to sell EUR/Buy US$ | ||
Aggregate contract amount | EUR50,000 | |
Average contractual exchange rate | US$1.24 per EUR | |
Fair value of all forward contracts(1) | NT$ |
(1) | Fair value represents the amount of the receivable from or payable to the counter-parties if the contracts were terminated on the reporting date. |
December 31, 2013 | ||
(in thousands) | ||
Contracts to sell | JPY | |
Aggregate contract amount | ||
Average contractual exchange rate | ||
Contracts to sell | CZK | |
Aggregate contract amount | ||
Average contractual exchange rate | ||
Contracts to sell NT$/Buy JPY | ||
Aggregate contract amount | NT$ | |
Average contractual exchange rate | ||
Contracts to sell US$/Buy JPY | ||
Aggregate contract amount | US$ | |
Average contractual exchange rate | ||
Contracts to sell US$/Buy CNY | ||
Aggregate contract amount | US$ | |
Average contractual exchange rate | ||
Contracts to sell US$/Buy SGD | ||
Aggregate contract amount | US$14,765 | |
Average contractual exchange rate | SGD1.25 per US$ | |
Contracts to sell US$/Buy MYR | ||
Aggregate contract amount | US$ | |
Average contractual exchange rate | ||
Fair value of all forward contracts(1) | NT$ |
(1) | Fair value represents the amount of the receivable from or payable to the counter-parties if the contracts were terminated on the reporting date. |
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
Debt Securities. |
Warrants and Rights. |
Other Securities. |
American Depositary Shares. |
Service | Fees | ||
(1) | Issuance of ADSs | Up to US$0.05 per ADS issued | |
(2) | Cancellation of ADSs | Up to US$0.05 per ADSs cancelled | |
(3) | Distribution of cash dividends or other cash distributions | Up to US$0.05 per ADSs held | |
(4) | Distributions of ADSs pursuant to stock dividends, free stock distributions or other exercises of rights | Up to US$0.05 per ADSs held | |
(5) | Distribution of securities other than ADSs or rights to purchase additional ADSs | Up to US$0.05 per ADSs held | |
(6) | Depository services | Up to US$0.05 per ADSs held on the applicable record date(s) established by the Depositary. |
· | fees for the transfer and registration of ADSs charged by the registrar and transfer agent for the ADSs; |
· | the expenses and charges incurred by the depositary in the conversion of foreign currency into U.S. dollars; |
· | such cable, telex and facsimile transmission and delivery expenses; |
· | taxes and duties upon the transfer ADSs; and |
· | the fees and expenses incurred by the depositary in connection with the delivery of ADSs. |
Reimbursement of Proxy Process Expenses | US$ | |||
Reimbursement of ADR holders identification expenses | US$ | |||
Reimbursement to Issuer | US$ | |||
Tax Payment to the IRS | US$ | |||
Total | US$ | |||
826,382.10 |
ITEM DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS |
CONTROLS AND PROCEDURES |
· | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect our transactions and dispositions of our assets; |
· | provide reasonable assurance that our transactions are recorded as necessary to permit preparation of our financial statements in accordance with IFRS, and that our receipts and expenditures are being made only in accordance with authorizations of our management and our directors; and |
· | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements. |
[RESERVED] |
Audit Committee Financial Expert |
Code of Ethics |
Principal Accountant Fees and Services |
Year Ended December 31, | Year Ended December 31, | |||||||||||||||||||
Services | 2012 | 2013 | 2012 | 2013 | 2014 | |||||||||||||||
NT$ | NT$ | NT$ | NT$ | NT$ | ||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||
Audit Fees (1) | 69,621 | 75,761 | 69,621 | 75,761 | 64,020 |
(1) | Audit Fees. This category includes the audit of our annual financial statements, review of quarterly financial statements and services that are normally provided by the independent auditors in connection with statutory and regulatory filings or engagements for those fiscal years, and service related to the audit of the effectiveness of our internal control over financial reporting required by Section 404 of the Sarbanes-Oxley Act of 2002. This category also includes advice on audit and accounting matters that arose during, or as a result of, the audit or the review of quarterly financial statements and statutory audits required by non-US jurisdictions, including statutory audits required by the Tax Bureau of the ROC, Customs Bureau of the ROC and Financial Supervisory Commission of the ROC. This category also includes assistance with and review of documents filed with the SEC. |
Exemptions From the Listing Standards for Audit Committees. |
Purchases of Equity Securities By the Issuer and Affiliated Purchasers. |
Change in Registrant’s Certifying Accountant |
Corporate Governance |
NYSE Standards for US Listed Companies under Listed Company Manual Section 303A | Our Corporate Governance Practices | |
NYSE Section 303A.02 establishes general standards to evaluate directors’ independence (no director qualifies as independent unless the board of directors affirmatively determines that the director has no material relationship with the listed company either directly or as a partner, shareholder or officer of an organization that has a relationship with the listed company). | Our standards for determining director independence, which comply with ROC requirements for director independence, may differ from the standards imposed by the NYSE. The independence standards of our directors are disclosed in our ROC annual report. Our board of directors has affirmatively determined that our five independent directors have no material relationship with us. |
NYSE Section 303A.03 requires non-management directors to meet at regularly scheduled executive meetings that are not attended by management. | ROC law does not contain such a requirement. ROC law does not allow separate board meetings to be held by part but not all of the directors of the board. | |
NYSE Section 303A.04 requires listed companies to have a nominating/corporate governance committee comprised entirely of independent directors which committee shall have a written charter establishing certain minimum responsibilities as set forth in NYSE Section 303A.04(b)(i) and providing for an annual evaluation of the committee’s performance. | ROC law does not contain such a requirement, and we do not have a nominating/corporate governance committee. | |
NYSE Section 303A.05 requires listed companies to have a compensation committee comprised entirely of independent directors, which committee shall have a written charter to establish certain minimum responsibilities as set forth in NYSE Section 303A.05(b)(i) and to provide for an annual evaluation of the committee’s performance. | We established a compensation committee on August 30, 2011 to meet the requirements under the ROC law. The current members of the compensation committee appointed by the board of directors are Ding-Yuan Yang, Vivien Huey-Juan Hsieh and Chin-Bing (Philip) Peng. We have a written charter to establish certain minimum responsibilities in accordance with ROC law. We do not assess the independence of our compensation committee members under the independence requirements of the NYSE listing standards. | |
NYSE Section 303A.08 requires each company to give to shareholders the opportunity to vote on all equity based compensation plans and material revisions thereto with certain exceptions. | Under ROC law, shareholders’ approval is required for (i) the distribution of employee bonuses, (ii) any issuance of restricted stocks to employees, and (iii) employee stock option plans with exercise price lower than the closing price of the company’s stocks as of the issuance date. Other than the above, under ROC law, the board of directors has authority to approve employee stock option plans with exercise price equal to or higher than the closing price of the company’s stocks as of the issuance date, and to grant options to employees pursuant to such plans, subject to the approval of the FSC , and to approve share buy-back programs and the transfer of shares to employees under such programs. |
NYSE Standards for US Listed Companies under Listed Company Manual Section 303A | Our Corporate Governance Practices | |
NYSE Section 303A.09 requires public companies to adopt and disclose corporate governance guidelines, including several issues for which such reporting is mandatory, and to include such information on the company’s website (which website should also include the charters of the audit committee, the nominating committee, and the compensation committee.) | We currently comply with ROC non-binding corporate governance principles promulgated by the Taiwan Stock Exchange, and we provide an explanation of differences between our practice and the principles, if any, in our ROC annual report. | |
FINANCIAL STATEMENTS |
FINANCIAL STATEMENTS |
(a) | Report of Independent Registered Public Accounting Firm. |
(b) | Consolidated Statements of Financial Position of AU Optronics Corp. and subsidiaries as of |
(c) | Consolidated Statements of Comprehensive Income (Loss) of AU Optronics Corp. and subsidiaries for the years ended December 31, 2012, 2013 and |
(d) | Consolidated Statements of Changes in Equity of AU Optronics Corp. and subsidiaries for the years ended December 31, 2012, 2013 and |
(e) | Consolidated Statements of Cash Flows of AU Optronics Corp. and subsidiaries for the years ended December 31, 2012, 2013 and |
(f) | Notes to Consolidated Financial Statements of AU Optronics Corp. and subsidiaries. |
EXHIBITS |
1.1 | Articles of Incorporation (English translation). |
2.1 | Deposit Agreement, dated May 29, 2002, among AU Optronics Corp., Citibank, N.A. as depositary, and Holders and Beneficial Owners of American depositary shares evidenced by American depositary receipts issued thereunder, including the form of American depositary receipt (incorporated herein by reference to Exhibit 2(A) to our annual report on Form 20-F as filed with the Commission on June 30, 2003). |
2.2 | Amendment No. 1 to the Deposit Agreement, dated February 15, 2006, among AU Optronics Corp., Citibank, N.A. as depositary, and Holders and Beneficial Owners of American depositary shares evidenced by American depositary receipts issued thereunder, including the amended form of American depositary receipt (incorporated herein by reference to Exhibit 2.2 to our annual report on Form 20-F as filed with the Commission on June 29, 2007). |
4.1 | Patent and Technology License Agreement by and between FDTC and AU Optronics Corp., for TFT-LCD technologies, dated March 31, 2003 (incorporated herein by reference to Exhibit 4(g) to our annual report on Form 20-F as filed with the Commission on June 30, 2003). |
4.2 | Stock Purchase Agreement by and among FDTC, Fujitsu and AU Optronics Corp., for purchase certain amount of stocks of FDTC, dated March 25, 2003 (incorporated herein by reference to Exhibit 4(i) to our annual report on Form 20-F as filed with the Commission on June 30, 2003). |
4.3 | Lease Agreement with Hsinchu Science Park Administration in relation to government-owned land located at Hsinchu Science Park, No. 76-6 Small Section, Hsinchu, Taiwan, Republic of China, with respect to part of the site of our previous L1 fab (incorporated herein by reference to Exhibit 4(j) to our annual report on Form 20-F as filed with the Commission on June 30, 2003). |
4.4 | Lease Agreement with Hsinchu Science Park Administration in relation to government-owned land located at Hsinchu Science Park, No. 77 Small Section, Hsinchu, Taiwan, Republic of China, with respect to part of the site of L1 fab (incorporated herein by reference to Exhibit 4(k) to our annual report on Form 20-F as filed with the Commission on June 30, 2003). |
4.5 | Lease Agreement with Hsinchu Science Park Administration in relation to government-owned land located at Hsinchu Science Park, Nos. 255-46 Gin-Shan Section, Hsinchu, Taiwan, Republic of China, the site of one of our 3.5-generation fabs (incorporated herein by reference to Exhibit 4(l) to ours annual report on Form 20-F as filed with the Commission on June 30, 2003). |
4.6 | Lease Agreement with Hsinchu Science Park Administration in relation to government-owned land located at Hsinchu Science Park, Nos. 114-4 Gin-Shan Section, Hsin-Chu, Taiwan, Republic of China, the site of one of our 3.5-generation fabs (incorporated herein by reference to Exhibit 4(m) to our annual report on Form 20-F as filed with the Commission on June 30, 2003). |
4.7 | Lease Agreement with Hsinchu Science Park Administration in relation to government-owned land located at Hsinchu Science Park, Nos. 472 etc., Gin-Shan Section, Hsinchu, Taiwan, Republic of China, the site of one of our 3.5-generation fabs (incorporated herein by reference to Exhibit 4(n) to our annual report on Form 20-F as filed with the Commission on June 30, 2003). |
4.8 | Lease Agreement by and between Acer Display Technology, Inc. and Min-Tour Inc. for No. 1 Xinhe Road Aspire Park, 325 Lungtan, Taoyuan, Taiwan, Republic of China, the site of our fourth-generation fab and module-assembly plant (in Chinese, with English summary translation) (incorporated herein by reference to Exhibit 10.12 to our Registration Statement on Form F-1 (Registration No. 333-87418) as filed with Commission on May 1, 2002). |
4.9 | Lease Agreement by and between AU Optronics Corp. and UMC for No. 1, Gin-Shan Section 7 of Hsinchu Science Park, Hsinchu, Taiwan, Republic of China, the site of one of our fourth-generation fab module-assembly plant (in Chinese, with English summary translation) (incorporated herein by reference to Exhibit 10.13 to our Registration Statement on Form F-1 (Registration No. 333-87418) as filed with the Commission on May 1, 2002). |
4.10 | Lease Agreement by and between AU Optronics (Suzhou) Corp., Ltd. and Chinese-Singapore Suzhou Industrial Park Development Co., Ltd. for No. 398, Suhong Zhong Road, Suzhou Industrial Park, Suzhou, The People’s Republic of China, the site of two of our module-assembly plants (incorporated herein by reference to Exhibit 4(q) to our annual report on Form 20-F as filed with the Commission on June 30, 2003). |
4.11 | Merger Agreement, dated April 7, 2006, between AU Optronics Corp. and Quanta Display Inc. (incorporated herein by reference to Item 1 of our Form 6-K as filed with the Commission on May 12, 2006). |
4.12 | Quanta Display Inc. 2002 Employee Stock Option Plan (English translation) (incorporated herein by reference to Exhibit 4.13 to our annual report on Form 20-F as filed with the Commission on June 29, 2007). |
4.13 | Quanta Display Inc. 2003 Employee Stock Option Plan (English translation) (incorporated herein by reference to Exhibit 4.14 to our annual report on Form 20-F as filed with the Commission on June 29, 2007). |
8.1 | List of Subsidiaries. |
12.1 | Certification of Shuang-Lang (Paul) Peng, President of AU Optronics Corp., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
12.2 | Certification of Andy Yang, Chief Financial Officer of AU Optronics Corp., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
13.1 | Certification of Shuang-Lang (Paul) Peng, President of AU Optronics Corp., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
13.2 | Certification of Andy Yang, Chief Financial Officer of AU Optronics Corp., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
15.1 | Consent of Independent Registered |
AU OPTRONICS CORP. | ||||
By: | /s/ Shuang-Lang (Paul) Peng | |||
Name: | Shuang-Lang (Paul) Peng | |||
Title: | President |
Consolidated Financial Statements of AU Optronics Corp. and Subsidiaries | Page |
Note | December 31, 2013 | December 31, 2012 | January 1, 2012 | Note | December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||||||
Cash and cash equivalents | 6 | $ | 76,312,272 | 76,655,675 | 90,053,268 | 6 | $ | 81,965,333 | 76,312,272 | |||||||||||||||||||
Financial assets measured at fair value through profit or loss-current | 7 | 48,850 | 23,621 | 85,621 | 7 | 133,412 | 48,850 | |||||||||||||||||||||
Notes and accounts receivable, net | 9 | 40,600,855 | 36,357,450 | 44,747,926 | 9 | 55,950,687 | 40,600,855 | |||||||||||||||||||||
Accounts receivables from related parties, net | 9, 34 | 3,032,906 | 6,191,079 | 6,783,605 | ||||||||||||||||||||||||
Accounts receivable from related parties, net | 9, 35 | 3,613,524 | 3,032,906 | |||||||||||||||||||||||||
Other receivables from related parties | 34 | 93,418 | 91,185 | 191,499 | 35 | 56,945 | 93,418 | |||||||||||||||||||||
Income taxes receivable | 47,849 | 65,832 | 72,413 | 42,856 | 47,849 | |||||||||||||||||||||||
Inventories | 10 | 37,597,994 | 42,585,982 | 47,881,948 | 10 | 36,420,148 | 37,597,994 | |||||||||||||||||||||
Other current financial assets | 6, 9, 35 | 6,800,097 | 2,385,526 | 2,083,478 | 6, 9, 36 | 3,024,073 | 6,800,097 | |||||||||||||||||||||
Noncurrent assets held for sale | 11, 12 | 732,879 | 116,390 | - | 11, 13 | - | 732,879 | |||||||||||||||||||||
Other current assets | 15, 35 | 4,336,937 | 9,599,504 | 8,490,013 | 16 | 4,407,556 | 4,336,937 | |||||||||||||||||||||
Total current assets | 169,604,057 | 174,072,244 | 200,389,771 | 185,614,534 | 169,604,057 | |||||||||||||||||||||||
Noncurrent assets: | ||||||||||||||||||||||||||||
Financial assets measured at fair value through profit or loss-noncurrent | 7 | - | 66 | 175 | ||||||||||||||||||||||||
Available-for-sale financial assets-noncurrent | 8, 35 | 700,730 | 1,577,024 | 1,924,569 | 8 | 77,724 | 700,730 | |||||||||||||||||||||
Investments in equity-accounted investees | 11 | 13,353,861 | 13,819,181 | 15,921,825 | 11 | 14,796,070 | 13,353,861 | |||||||||||||||||||||
Property, plant and equipment, net | 12, 34, 35 | 270,269,007 | 315,518,217 | 359,360,902 | 13, 35, 36 | 231,814,724 | 270,269,007 | |||||||||||||||||||||
Investment property, net | 13, 21, 35 | 1,255,214 | 1,265,584 | 1,275,954 | 14, 21, 36 | 465,868 | 1,255,214 | |||||||||||||||||||||
Intangible assets | 14 | 4,432,542 | 3,652,303 | 4,147,507 | 15 | 3,885,755 | 4,432,542 | |||||||||||||||||||||
Deferred tax assets | 23 | 1,078,630 | 1,065,850 | 841,274 | 30 | 1,190,087 | 1,078,630 | |||||||||||||||||||||
Other noncurrent assets | 15, 35 | 4,141,894 | 4,037,990 | 4,583,524 | 16, 36 | 4,499,558 | 4,141,894 | |||||||||||||||||||||
Total noncurrent assets | 295,231,878 | 340,936,215 | 388,055,730 | 256,729,786 | 295,231,878 | |||||||||||||||||||||||
Total Assets | $ | 464,835,935 | 515,008,459 | 588,445,501 | $ | 442,344,320 | 464,835,935 |
Note | December 31, 2013 | December 31, 2012 | January 1, 2012 | Note | December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||||||
Short-term borrowings | 16 | $ | 3,457,174 | 8,620,050 | 7,850,793 | 17 | $ | 381,322 | 3,457,174 | |||||||||||||||||||
Current installments of bonds payable | 17 | - | - | 3,564,383 | ||||||||||||||||||||||||
Convertible bonds payable | 18 | 15,110,028 | - | |||||||||||||||||||||||||
Current installments of long-term borrowings | 19 | 62,763,024 | 45,490,589 | 42,868,289 | 19 | 41,507,062 | 62,763,024 | |||||||||||||||||||||
Financial liabilities measured at fair value through profit or loss-current | 7 | 420,861 | 804,001 | 17,523 | 7 | 232,879 | 420,861 | |||||||||||||||||||||
Notes and accounts payable | 63,410,426 | 65,695,688 | 65,244,893 | 63,359,887 | 63,410,426 | |||||||||||||||||||||||
Accounts payables to related parties | 34 | 14,952,576 | 15,814,928 | 17,454,179 | ||||||||||||||||||||||||
Accounts payable to related parties | 35 | 11,463,941 | 14,952,576 | |||||||||||||||||||||||||
Equipment and construction payable | 34 | 7,468,055 | 14,597,502 | 18,761,731 | 4,496,702 | 7,468,055 | ||||||||||||||||||||||
Other payables to related parties | 34 | 70,552 | 76,011 | 168,004 | 35 | 56,902 | 70,552 | |||||||||||||||||||||
Current income tax liabilities | 990,983 | 246,548 | 415,122 | 2,629,063 | 990,983 | |||||||||||||||||||||||
Provisions-current | 20 | 6,344,114 | 20,452,981 | 25,406,821 | 20 | 8,696,279 | 6,344,114 | |||||||||||||||||||||
Other current liabilities | 11, 12 | 21,460,893 | 20,423,425 | 25,816,231 | 11 | 26,209,075 | 21,460,893 | |||||||||||||||||||||
Total current liabilities | 181,338,658 | 192,221,723 | 207,567,969 | 174,143,140 | 181,338,658 | |||||||||||||||||||||||
Noncurrent liabilities: | ||||||||||||||||||||||||||||
Financial liabilities measured at fair value through profit or loss-noncurrent | 7 | - | 54,000 | 176,226 | ||||||||||||||||||||||||
Hedging derivative financial liabilities-noncurrent | 7 | 17,062 | 58,547 | 198,360 | 7 | 7,093 | 17,062 | |||||||||||||||||||||
Convertible bonds payable | 18 | 19,513,820 | 21,598,083 | 21,787,128 | 18 | - | 19,513,820 | |||||||||||||||||||||
Long-term borrowings, excluding current installments | 19 | 98,974,151 | 147,417,823 | 156,088,780 | 19 | 85,689,365 | 98,974,151 | |||||||||||||||||||||
Provisions-noncurrent | 20 | 5,129,403 | 8,658,360 | 1,183,461 | 20 | 1,576,687 | 5,129,403 | |||||||||||||||||||||
Deferred tax liabilities | 23 | 820,130 | 816,402 | 446,194 | 30 | 2,459,839 | 820,130 | |||||||||||||||||||||
Other noncurrent liabilities | 11, 22, 34 | 6,052,491 | 8,034,722 | 9,446,800 | 11, 22 | 4,481,264 | 6,052,491 | |||||||||||||||||||||
Total noncurrent liabilities | 130,507,057 | 186,637,937 | 189,326,949 | 94,214,248 | 130,507,057 | |||||||||||||||||||||||
Total liabilities | 311,845,715 | 378,859,660 | 396,894,918 | 268,357,388 | 311,845,715 | |||||||||||||||||||||||
Equity | 24 | 23 | ||||||||||||||||||||||||||
Common stock, $10 par value | 96,242,451 | 88,270,455 | 88,270,455 | 96,242,451 | 96,242,451 | |||||||||||||||||||||||
Capital surplus | 60,503,012 | 112,515,983 | 114,987,788 | 59,258,041 | 60,503,012 | |||||||||||||||||||||||
Accumulated deficit | (21,897,673 | ) | (80,204,451 | ) | (30,144,451 | ) | (6,656,523 | ) | (21,897,673 | ) | ||||||||||||||||||
Other components of equity | 4,105,910 | 1,504,200 | 2,566,027 | 5,813,709 | 4,105,910 | |||||||||||||||||||||||
Equity attributable to stockholders of AU Optronics Corp. | 138,953,700 | 122,086,187 | 175,679,819 | 154,657,678 | 138,953,700 | |||||||||||||||||||||||
Non-controlling interests | 24 | 14,036,520 | 14,062,612 | 15,870,764 | 19,329,254 | 14,036,520 | ||||||||||||||||||||||
Total equity | 152,990,220 | 136,148,799 | 191,550,583 | 173,986,932 | 152,990,220 | |||||||||||||||||||||||
Total Liabilities and Equity | $ | 464,835,935 | 515,008,459 | 588,445,501 | $ | 442,344,320 | 464,835,935 |
Note | 2013 | 2012 | Note | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Net revenue | 26, 34 | $ | 416,363,005 | 378,470,935 | 25, 35 | $ | 408,178,750 | 416,363,005 | 378,470,935 | |||||||||||||||||||
Cost of sales | 10, 27, 34 | (382,378,938 | ) | (391,593,831 | ) | 10, 26, 35 | (359,668,105 | ) | (382,378,938 | ) | (391,593,831 | ) | ||||||||||||||||
Gross profit (loss) | 33,984,067 | (13,122,896 | ) | 48,510,645 | 33,984,067 | (13,122,896 | ) | |||||||||||||||||||||
Selling and distribution expenses | 27 | (7,470,014 | ) | (6,377,179 | ) | 26 | (7,798,965 | ) | (7,470,014 | ) | (6,377,179 | ) | ||||||||||||||||
General and administrative expenses | 27 | (9,691,071 | ) | (9,203,940 | ) | 12, 26 | (9,389,601 | ) | (9,691,071 | ) | (9,203,940 | ) | ||||||||||||||||
Research and development expenses | 27 | (8,530,461 | ) | (9,904,299 | ) | 26 | (9,156,656 | ) | (8,530,461 | ) | (9,904,299 | ) | ||||||||||||||||
Other income | 28, 34 | 2,448,464 | 3,191,543 | 27, 35 | 2,162,107 | 2,448,464 | 3,191,543 | |||||||||||||||||||||
Other gains and losses | 7, 8, 11, 12, 13, 18, 29, 34 | (1,176,393 | ) | (10,665,140 | ) | 7, 8, 11, 12, 13, 14, 18, 28, 35 | (801,803 | ) | (1,176,393 | ) | (10,665,140 | ) | ||||||||||||||||
Finance costs | 30 | (4,782,832 | ) | (5,731,213 | ) | 13, 18, 29 | (4,045,133 | ) | (4,782,832 | ) | (5,731,213 | ) | ||||||||||||||||
Share of profit of equity-accounted investees | 11 | 454,268 | 319,061 | 11 | 499,865 | 454,268 | 319,061 | |||||||||||||||||||||
Profit (loss) before income tax | 5,236,028 | (51,494,063 | ) | 19,980,459 | 5,236,028 | (51,494,063 | ) | |||||||||||||||||||||
Income tax expense | 23 | 1,359,164 | 1,123,984 | 30 | 3,243,220 | 1,359,164 | 1,123,984 | |||||||||||||||||||||
Profit (loss) for the year | 3,876,864 | (52,618,047 | ) | 16,737,239 | 3,876,864 | (52,618,047 | ) | |||||||||||||||||||||
Other comprehensive income (loss) | 22, 23, 24 | 22, 23, 30 | ||||||||||||||||||||||||||
Items that will never be reclassified to profit or loss | ||||||||||||||||||||||||||||
Actuarial loss in defined benefit plans | (35,283 | ) | (369,539 | ) | ||||||||||||||||||||||||
Remeasurement of defined benefit obligations | 47,827 | (35,283 | ) | (369,539 | ) | |||||||||||||||||||||||
Related tax | 467 | 1,029 | 622 | 467 | 1,029 | |||||||||||||||||||||||
Items that are or may be reclassified to profit or loss | ||||||||||||||||||||||||||||
Foreign operations - foreign currency translation differences | 3,011,724 | (1,174,931 | ) | |||||||||||||||||||||||||
Foreign operations – foreign currency translation differences | 2,314,635 | 3,011,724 | (1,174,931 | ) | ||||||||||||||||||||||||
Net change in fair value of available-for-sale financial assets | 449,043 | 191,474 | 88,408 | 449,043 | 191,474 | |||||||||||||||||||||||
Effective portion of changes in fair value of cash flow hedges | 41,485 | 140,576 | 9,969 | 41,485 | 140,576 | |||||||||||||||||||||||
Equity-accounted investees – share of other comprehensive income (loss) | 131,926 | (282,016 | ) | 120,545 | 131,926 | (282,016 | ) | |||||||||||||||||||||
Realized gain on sales of securities transferred to profit or loss | (524,690 | ) | (122,987 | ) | (318,079 | ) | (524,690 | ) | (122,987 | ) | ||||||||||||||||||
Related tax | (76,097 | ) | 32,575 | (86,211 | ) | (76,097 | ) | 32,575 | ||||||||||||||||||||
Other comprehensive income (loss), net of taxes | 2,998,575 | (1,583,819 | ) | 2,177,716 | 2,998,575 | (1,583,819 | ) | |||||||||||||||||||||
Total comprehensive income (loss) for the year | $ | 6,875,439 | (54,201,866 | ) | $ | 18,914,955 | 6,875,439 | (54,201,866 | ) | |||||||||||||||||||
Profit (loss) attributable to: | ||||||||||||||||||||||||||||
Stockholders of AU Optronics Corp. | $ | 3,804,142 | (51,327,071 | ) | $ | 16,366,629 | 3,804,142 | (51,327,071 | ) | |||||||||||||||||||
Non-controlling interests | 72,722 | (1,290,976 | ) | 370,610 | 72,722 | (1,290,976 | ) | |||||||||||||||||||||
Profit (loss) for the year | $ | 3,876,864 | (52,618,047 | ) | $ | 16,737,239 | 3,876,864 | (52,618,047 | ) | |||||||||||||||||||
Total comprehensive income (loss) attributable to: | ||||||||||||||||||||||||||||
Stockholders of AU Optronics Corp. | $ | 6,367,518 | (52,751,685 | ) | $ | 18,125,736 | 6,367,518 | (52,751,685 | ) | |||||||||||||||||||
Non-controlling interests | 507,921 | (1,450,181 | ) | 789,219 | 507,921 | (1,450,181 | ) | |||||||||||||||||||||
Total comprehensive income (loss) for the year | $ | 6,875,439 | (54,201,866 | ) | $ | 18,914,955 | 6,875,439 | (54,201,866 | ) | |||||||||||||||||||
Earnings (loss) per share | 25 | 31 | ||||||||||||||||||||||||||
Basic earnings (loss) per share | $ | 0.41 | (5.81 | ) | $ | 1.70 | 0.41 | (5.81 | ) | |||||||||||||||||||
Diluted earnings per share | $ | 0.40 | - | $ | 1.69 | 0.40 | - |
Equity attributable to stockholders of AU Optronics Corp. | Equity attributable to stockholders of AU Optronics Corp. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated deficit | Other components of equity | Equity | Accumulated deficit | Other components of equity | Equity attributable tostockholders of AU Optronics Corp. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Capital surplus | Legal reserve | Accumulated deficit | Subtotal | Cumulative translation differences | Unrealized gains (losses) on financial instruments | Unrealized gains (losses) on cash flow hedges | Subtotal | attributable to stockholders of AU Optronics Corp. | Non-controlling interests | Total Equity | Common stock | Capital surplus | Legal reserve | Accumulated deficit | Subtotal | Cumulative translation differences | Unrealized gains (losses) on financial instruments | Unrealized gains (losses) on cash flow hedges | Subtotal | Non-controlling interests | Total equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2012 | $88,270,455 | 114,987,788 | 15,875,372 | (46,019,823 | ) | (30,144,451 | ) | 2,768,971 | (29,354 | ) | (173,590 | ) | 2,566,027 | 175,679,819 | 15,870,764 | 191,550,583 | $ | 88,270,455 | 114,987,788 | 15,875,372 | (46,019,823 | ) | (30,144,451 | ) | 2,768,971 | (29,354 | ) | (173,590 | ) | 2,566,027 | 175,679,819 | 15,870,764 | 191,550,583 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Appropriation for capital surplus and legal reserve | - | (2,472,483 | ) | (15,875,372 | ) | 18,347,855 | 2,472,483 | - | - | - | - | - | - | - | - | (2,472,483 | ) | (15,875,372 | ) | 18,347,855 | 2,472,483 | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss for the year | - | - | - | (51,327,071 | ) | (51,327,071 | ) | - | - | - | - | (51,327,071 | ) | (1,290,976 | ) | (52,618,047 | ) | - | - | - | (51,327,071 | ) | (51,327,071 | ) | - | - | - | - | (51,327,071 | ) | (1,290,976 | ) | (52,618,047 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | - | - | - | (362,787 | ) | (362,787 | ) | (1,251,503 | ) | 49,100 | 140,576 | (1,061,827 | ) | (1,424,614 | ) | (159,205 | ) | (1,583,819 | ) | - | - | - | (362,787 | ) | (362,787 | ) | (1,251,503 | ) | 49,100 | 140,576 | (1,061,827 | ) | (1,424,614 | ) | (159,205 | ) | (1,583,819 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) for the year | - | - | - | (51,689,858 | ) | (51,689,858 | ) | (1,251,503 | ) | 49,100 | 140,576 | (1,061,827 | ) | (52,751,685 | ) | (1,450,181 | ) | (54,201,866 | ) | - | - | - | (51,689,858 | ) | (51,689,858 | ) | (1,251,503 | ) | 49,100 | 140,576 | (1,061,827 | ) | (52,751,685 | ) | (1,450,181 | ) | (54,201,866 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to capital surplus and accumulated deficit for changes in investees’ equity | - | 678 | - | (842,625 | ) | (842,625 | ) | - | - | - | - | (841,947 | ) | 464,052 | (377,895 | ) | - | 678 | - | (842,625 | ) | (842,625 | ) | - | - | - | - | (841,947 | ) | 464,052 | (377,895 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in non-controlling interests | - | - | - | - | - | - | - | - | - | - | (822,023 | ) | (822,023 | ) | - | - | - | - | - | - | - | - | - | - | (822,023 | ) | (822,023 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | 88,270,455 | 112,515,983 | - | (80,204,451 | ) | (80,204,451 | ) | 1,517,468 | 19,746 | (33,014 | ) | 1,504,200 | 122,086,187 | 14,062,612 | 136,148,799 | 88,270,455 | 112,515,983 | - | (80,204,451 | ) | (80,204,451 | ) | 1,517,468 | 19,746 | (33,014 | ) | 1,504,200 | 122,086,187 | 14,062,612 | 136,148,799 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Appropriation for capital surplus | - | (54,614,704 | ) | - | 54,614,704 | 54,614,704 | - | - | - | - | - | - | - | - | (54,614,704 | ) | - | 54,614,704 | 54,614,704 | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock | 7,971,996 | 2,308,654 | - | - | - | - | - | - | - | 10,280,650 | - | 10,280,650 | 7,971,996 | 2,308,654 | - | - | - | - | - | - | - | 10,280,650 | - | 10,280,650 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Profit for the year | - | - | - | 3,804,142 | 3,804,142 | - | - | - | - | 3,804,142 | 72,722 | 3,876,864 | - | - | - | 3,804,142 | 3,804,142 | - | - | - | - | 3,804,142 | 72,722 | 3,876,864 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | - | - | - | (38,334 | ) | (38,334 | ) | 2,319,062 | 241,163 | 41,485 | 2,601,710 | 2,563,376 | 435,199 | 2,998,575 | - | - | - | (38,334 | ) | (38,334 | ) | 2,319,062 | 241,163 | 41,485 | 2,601,710 | 2,563,376 | 435,199 | 2,998,575 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income for the year | - | - | - | 3,765,808 | 3,765,808 | 2,319,062 | 241,163 | 41,485 | 2,601,710 | 6,367,518 | 507,921 | 6,875,439 | - | - | - | 3,765,808 | 3,765,808 | 2,319,062 | 241,163 | 41,485 | 2,601,710 | 6,367,518 | 507,921 | 6,875,439 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to capital surplus and accumulated deficit for changes in investees’ equity | - | 293,079 | - | (73,734 | ) | (73,734 | ) | - | - | - | - | 219,345 | 45,969 | 265,314 | - | 293,079 | - | (73,734 | ) | (73,734 | ) | - | - | - | - | 219,345 | 45,969 | 265,314 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in non-controlling interests | - | - | - | - | - | - | - | - | - | - | (579,982 | ) | (579,982 | ) | - | - | - | - | - | - | - | - | - | - | (579,982 | ) | (579,982 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $96,242,451 | 60,503,012 | - | (21,897,673 | ) | (21,897,673 | ) | 3,836,530 | 260,909 | 8,471 | 4,105,910 | 138,953,700 | 14,036,520 | 152,990,220 | 96,242,451 | 60,503,012 | - | (21,897,673 | ) | (21,897,673 | ) | 3,836,530 | 260,909 | 8,471 | 4,105,910 | 138,953,700 | 14,036,520 | 152,990,220 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Appropriation of earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Legal reserve | - | - | 401,750 | (401,750 | ) | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends distributed to stockholders | - | - | - | (96,242 | ) | (96,242 | ) | - | - | - | - | (96,242 | ) | - | (96,242 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash distributed from capital surplus | - | (1,347,395 | ) | - | - | - | - | - | - | - | (1,347,395 | ) | - | (1,347,395 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Profit for the year | - | - | - | 16,366,629 | 16,366,629 | - | - | - | - | 16,366,629 | 370,610 | 16,737,239 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | - | - | - | 51,308 | 51,308 | 1,929,632 | (231,802 | ) | 9,969 | 1,707,799 | 1,759,107 | 418,609 | 2,177,716 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total comprehensive income for the year | - | - | - | 16,417,937 | 16,417,937 | 1,929,632 | (231,802 | ) | 9,969 | 1,707,799 | 18,125,736 | 789,219 | 18,914,955 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments to capital surplus and accumulated deficit for changes in investees’ equity | - | 102,424 | - | (1,080,545 | ) | (1,080,545 | ) | - | - | - | - | (978,121 | ) | 65,253 | (912,868 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in non-controlling interests | - | - | - | - | - | - | - | - | - | - | 4,438,262 | 4,438,262 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2014 | $ | 96,242,451 | 59,258,041 | 401,750 | (7,058,273 | ) | (6,656,523 | ) | 5,766,162 | 29,107 | 18,440 | 5,813,709 | 154,657,678 | 19,329,254 | 173,986,932 |
2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Profit (loss) before income tax | $ | 5,236,028 | (51,494,063 | ) | $ | 19,980,459 | 5,236,028 | (51,494,063 | ) | |||||||||||
Adjustments for: | ||||||||||||||||||||
Depreciation | 62,763,514 | 74,511,463 | 56,064,469 | 62,763,514 | 74,511,463 | |||||||||||||||
Amortization | 874,233 | 764,976 | 838,259 | 874,233 | 764,976 | |||||||||||||||
Interest expense | 4,782,832 | 5,731,213 | 4,045,133 | 4,782,832 | 5,731,213 | |||||||||||||||
Interest income | (329,360 | ) | (476,117 | ) | (468,390 | ) | (329,360 | ) | (476,117 | ) | ||||||||||
Dividend income | (2,855 | ) | (422,727 | ) | (4,350 | ) | (2,855 | ) | (422,727 | ) | ||||||||||
Equity-accounted investees – share of profit | (454,268 | ) | (319,061 | ) | ||||||||||||||||
Share of profit of equity-accounted investees | (499,865 | ) | (454,268 | ) | (319,061 | ) | ||||||||||||||
Losses (gains) on disposals of property, plant and equipment | (70,569 | ) | 389,008 | 307,630 | (70,569 | ) | 389,008 | |||||||||||||
Gains on disposals of investment securities | (1,813,751 | ) | (614,285 | ) | ||||||||||||||||
Gains on disposals of investment in subsidiaries | (23,744 | ) | - | |||||||||||||||||
Gains on disposals of investment properties | (279,729 | ) | - | - | ||||||||||||||||
Gains on disposals of investments and financial assets | (713,222 | ) | (1,813,751 | ) | (614,285 | ) | ||||||||||||||
Gains on disposals of subsidiaries | (90,702 | ) | (23,744 | ) | - | |||||||||||||||
Gain on bargain purchase | (2,883,913 | ) | - | - | ||||||||||||||||
Write-downs of inventories | 5,106,531 | 4,880,410 | 4,731,319 | 5,106,531 | 4,880,410 | |||||||||||||||
Impairment losses on assets | 755,634 | 4,952,058 | 2,371,034 | 755,634 | 4,952,058 | |||||||||||||||
Unrealized foreign currency exchange losses (gains) | 1,598,293 | (2,932,596 | ) | |||||||||||||||||
Gain on purchase of convertible bonds payable | (222,192 | ) | - | |||||||||||||||||
Gains on purchase of convertible bonds payable | (63,445 | ) | (222,192 | ) | - | |||||||||||||||
Effect of exchange rates on purchase of convertible bonds payable | (134,210 | ) | - | (176,823 | ) | (134,210 | ) | - | ||||||||||||
Changes in fair values of financial instruments | (462,303 | ) | 726,361 | (264,181 | ) | (462,303 | ) | 726,361 | ||||||||||||
Changes in deferred taxes | (12,393 | ) | (997 | ) | ||||||||||||||||
Unrealized foreign currency exchange losses (gains) | 1,605,972 | 1,598,293 | (2,932,596 | ) | ||||||||||||||||
Difference between pension costs and contributions for the year | (91,707 | ) | (78,588 | ) | (101,552 | ) | (91,707 | ) | (78,588 | ) | ||||||||||
72,263,685 | 87,111,118 | 64,417,644 | 72,276,078 | 87,112,115 | ||||||||||||||||
Change in operating assets and liabilities: | ||||||||||||||||||||
-notes and accounts receivable | (3,019,995 | ) | 8,549,423 | |||||||||||||||||
-receivables from related parties | 1,949,337 | 692,840 | ||||||||||||||||||
-inventories | (718,448 | ) | 341,572 | |||||||||||||||||
-other current assets | 462,182 | (695,340 | ) | |||||||||||||||||
-notes and accounts payable | (3,999,188 | ) | 2,353,411 | |||||||||||||||||
-accounts payables to related parties | 162,081 | (1,731,244 | ) | |||||||||||||||||
-provisions | (17,915,214 | ) | 2,707,610 | |||||||||||||||||
-other current liabilities | (530,671 | ) | (7,058,420 | ) | ||||||||||||||||
- notes and accounts receivable | (13,817,621 | ) | (3,019,995 | ) | 8,549,423 | |||||||||||||||
- receivables from related parties | 2,402,424 | 1,949,337 | 692,840 | |||||||||||||||||
- inventories | (3,266,062 | ) | (718,448 | ) | 341,572 | |||||||||||||||
- other current assets | 3,975,103 | 449,789 | (696,337 | ) | ||||||||||||||||
- notes and accounts payable | (4,357,288 | ) | (3,999,188 | ) | 2,353,411 | |||||||||||||||
- payables to related parties | (3,632,457 | ) | 162,081 | (1,731,244 | ) | |||||||||||||||
- provisions | (1,440,234 | ) | (17,915,214 | ) | 2,707,610 | |||||||||||||||
- other current liabilities | 2,438,673 | (530,671 | ) | (7,058,420 | ) | |||||||||||||||
(23,609,916 | ) | 5,159,852 | (17,697,462 | ) | (23,622,309 | ) | 5,158,855 | |||||||||||||
Cash generated from operating activities | 53,889,797 | 40,776,907 | 66,700,641 | 53,889,797 | 40,776,907 | |||||||||||||||
Cash received from interest income | 345,215 | 455,457 | 442,638 | 345,215 | 455,457 | |||||||||||||||
Cash received from dividend income | 233,302 | 607,715 | 322,236 | 233,302 | 607,715 | |||||||||||||||
Cash paid for interest | (4,148,281 | ) | (5,091,772 | ) | (3,145,859 | ) | (4,148,281 | ) | (5,091,772 | ) | ||||||||||
Cash paid for income taxes | (677,589 | ) | (1,000,359 | ) | (926,924 | ) | (677,589 | ) | (1,000,359 | ) | ||||||||||
Net cash provided by operating activities | 49,642,444 | 35,747,948 | 63,392,732 | 49,642,444 | 35,747,948 | |||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Proceeds from disposals of available-for-sale financial assets | 1,688,342 | 356,790 | 1,574,669 | 1,688,342 | 356,790 | |||||||||||||||
Acquisitions of available-for-sale financial assets | (209,478 | ) | - | (1,681 | ) | (209,478 | ) | - | ||||||||||||
Acquisitions of equity-accounted investees | (939 | ) | (239,795 | ) | (2,529,360 | ) | (939 | ) | (239,795 | ) | ||||||||||
Proceeds from disposals of equity-accounted investees | 1,729,729 | 523,544 | 25,473 | 1,729,729 | 523,544 | |||||||||||||||
Cash decrease resulting from disposals of subsidiaries | (260,210 | ) | - | |||||||||||||||||
Proceeds from return of capital by equity-accounted investees | 48,258 | - | - | |||||||||||||||||
Acquisitions of property, plant and equipment | (25,457,759 | ) | (43,332,613 | ) | (16,970,961 | ) | (25,457,759 | ) | (43,332,613 | ) | ||||||||||
Proceeds from disposals of property, plant and equipment | 587,337 | 82,241 | 941,439 | 587,337 | 82,241 | |||||||||||||||
Deposits refunded | 160,295 | 105,501 | ||||||||||||||||||
Proceeds from disposals of investment properties | 1,061,297 | - | - | |||||||||||||||||
Decrease in refundable deposits | 14,735 | 160,295 | 105,501 | |||||||||||||||||
Acquisitions of intangible assets | (1,654,318 | ) | (445,292 | ) | (291,337 | ) | (1,654,318 | ) | (445,292 | ) | ||||||||||
Decrease (increase) in other financial assets | 193,209 | (232,083 | ) | (83,640 | ) | 193,209 | (232,083 | ) | ||||||||||||
Net cash inflows from acquisition of subsidiaries | 2,763,252 | - | - | |||||||||||||||||
Net cash inflows (outflows) resulting from disposals of subsidiaries | 341,019 | (260,210 | ) | - | ||||||||||||||||
Net cash used in investing activities | (23,223,792 | ) | (43,181,707 | ) | (13,106,837 | ) | (23,223,792 | ) | (43,181,707 | ) | ||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Repayments of short-term borrowings | (5,162,876 | ) | (579,923 | ) | ||||||||||||||||
Repurchase of convertible bonds payable | (3,147,405 | ) | - | |||||||||||||||||
Decrease in short-term borrowings | (3,075,852 | ) | (5,162,876 | ) | (579,923 | ) | ||||||||||||||
Purchase of convertible bonds payable | (5,978,884 | ) | (3,147,405 | ) | - | |||||||||||||||
Repayments of bonds payable | - | (3,555,819 | ) | - | - | (3,555,819 | ) | |||||||||||||
Proceeds from long-term borrowings | 19,629,576 | 46,323,730 | 32,956,812 | 19,629,576 | 46,323,730 | |||||||||||||||
Repayments of long-term borrowings | (48,378,183 | ) | (47,160,810 | ) | (67,382,137 | ) | (48,378,183 | ) | (47,160,810 | ) | ||||||||||
Decrease in guarantee deposits | (145,746 | ) | (23,806 | ) | (87,132 | ) | (145,746 | ) | (23,806 | ) | ||||||||||
Cash dividends | (1,443,637 | ) | - | - | ||||||||||||||||
Proceeds from issuance of common stock | 10,280,650 | - | - | 10,280,650 | - | |||||||||||||||
Proceeds from issuance of subsidiary shares to non-controlling interests and others | 138,548 | (943,817 | ) | |||||||||||||||||
Net change of non-controlling interests and others | (30,621 | ) | 138,548 | (943,817 | ) | |||||||||||||||
Net cash used in financing activities | (26,785,436 | ) | (5,940,445 | ) | (45,041,451 | ) | (26,785,436 | ) | (5,940,445 | ) | ||||||||||
Effect of exchange rate change on cash held | 23,381 | (23,389 | ) | 408,617 | 23,381 | (23,389 | ) | |||||||||||||
Net decrease in cash and cash equivalents | (343,403 | ) | (13,397,593 | ) | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 5,653,061 | (343,403 | ) | (13,397,593 | ) | |||||||||||||||
Cash and cash equivalents at January 1 | 76,655,675 | 90,053,268 | 76,312,272 | 76,655,675 | 90,053,268 | |||||||||||||||
Cash and cash equivalents at December 31 | $ | 76,312,272 | 76,655,675 | $ | 81,965,333 | 76,312,272 | 76,655,675 |
1. | Organization |
2. |
3. | New Accounting Pronouncements Under International Financial Reporting Standards (“IFRS”) |
(a) | New and revised standards, amendments and interpretations in issue but not yet effective The Company has not adopted the following new, revised and amended IFRS that have been issued by the International Accounting Standards Board (“IASB”) but are not yet effective: |
New, Revised or Amended Standards and Interpretations | Effective Date (Note) | |
IFRS 9, Financial Instruments | January 1, 2018 | |
Amendments to IFRS 10 and IAS 28, Sale or Contribution of Assets between an Investor and its Associate or Joint Venture | January 1, 2016 | |
Amendments to IFRS 10, IFRS 12 and IAS 28, Investments Entities: Applying the Consolidation Exception | January 1, 2016 | |
Amendments to IFRS 11, Accounting for Acquisitions of Interests in Joint Operations | January 1, 2016 | |
IFRS 14, Regulatory Deferral Accounts | January 1, 2016 | |
IFRS 15, Revenue from Contracts with Customers | January 1, 2017 | |
Amendments to IAS 1, Disclosure Initiative | January 1, 2016 | |
Amendments to IAS 16 and IAS 38, Clarification of Acceptable Methods of Depreciation and Amortization | January 1, 2016 |
New, Revised or Amended Standards and Interpretations | Effective Date (Note) | |
Amendments to IAS 16 and IAS 41, Agriculture: Bearer Plants | January 1, 2016 | |
Amendments to IAS 19, Defined Benefit Plans: Employee Contributions | July 1, 2014 | |
Amendments to IAS 27, Equity Method in Separate Financial Statements | January 1, 2016 |
Note: | The aforementioned new, revised and amended standards and interpretations are effective for annual periods beginning on or after the respective effective dates. |
(b) | Except for the items discussed below, the Company believes that the initial adoption of aforementioned standards or interpretations will not have any significant impact on its accounting policies. |
(1) | IFRS 9, Financial Instruments |
(2) | IFRS 15, Revenue from Contracts with Customers |
4. | Summary of Significant Accounting Policies |
(a) | Statement of compliance |
(b) | Basis of preparation |
(1) | Basis of measurement |
(i) | Financial instruments measured at fair value through profit or loss (including derivative financial instruments) (note 7); |
(ii) | Available-for-sale financial assets measured at fair value (note 8); |
(iii) | Hedging derivative financial instruments measured at fair value (note 7); and |
(iv) | Defined benefit asset (liability) is recognized as the fair value the plan assets less the present value of the defined benefit obligation (note 22). |
(2) | Functional and presentation currency |
(c) | Basis of consolidation |
(1) | Principle of preparation of the consolidated financial statements |
(i) | The aggregate of: |
a. | the far value of the consideration received, and |
b. | the fair value of any retained non-controlling investment in the former subsidiary at the date when the Company losses |
(ii) | The aggregate of the carrying amount of the former subsidiary’s assets (including goodwill), liabilities and non-controlling interests at the date when the Company losses control. |
(2) | List of subsidiaries in the consolidated financial statements |
Percentage of Ownership (%) | ||||||||||||||||||||||||
Name of Investor | Name of Subsidiary | Main Activities and Location | Percentage of Ownership (%) | |||||||||||||||||||||
Subsidiary | Main Activities and Location | 2013.12.31 | 2012.12.31 | 2012.1.1 | December 31, 2014 | December 31, 2013 | ||||||||||||||||||
AUO | AU Optronics (L) Corp. (AULB) | Holding and trading company (Malaysia) | 100.00 | 100.00 | 100.00 | AU Optronics (L) Corp. (AULB) | Holding and trading company (Malaysia) | 100.00 | 100.00 | |||||||||||||||
AUO | Konly Venture Corp. (Konly) | Venture capital investment (Taiwan ROC) | 100.00 | 100.00 | 100.00 | Konly Venture Corp. (Konly) | Venture capital investment (Taiwan ROC) | 100.00 | 100.00 | |||||||||||||||
AUO | Ronly Venture Corp. (Ronly) | Venture capital investment (Taiwan ROC) | 100.00 | 100.00 |
Name of Investor | Name of Subsidiary | Main Activities and Location | Percentage of Ownership (%) | |||||
December 31, 2014 | December 31, 2013 | |||||||
AUO | Toppan CFI (Taiwan) Co., Ltd. (Toppan CFI) | Manufacturing and sale of color filters (Taiwan ROC) | 49.00(1) | 49.00 (1) | ||||
AUO | Sungen Power Corporation (SGPC) | Solar power generation (Taiwan ROC) | -(2) | 100.00 | ||||
AUO, Konly and Ronly | Darwin Precisions Corporation (DPTW) / BriView Corp. (BVTW) | Manufacturing, design and sale of TFT-LCD modules, TV set, backlight modules and related parts (Taiwan ROC) | 43.48(3) | 68.86(3) | ||||
AUO, Konly and Ronly | Sanda Materials Corporation (SDMC) | Venture capital investment (Taiwan ROC) | 99.90(4) | - | ||||
AUO, Konly and Ronly | AUO Crystal Corp. (ACTW) | Design, manufacture and sale of solar modules (Taiwan ROC) | 96.56(4) | 90.84 | ||||
Konly | Darshin Microelectronics Inc. (DSTW) | IC design and sales (Taiwan ROC) | - (5) | 66.68 | ||||
Konly | Fargen Power Corporation (FGPC) | Solar power generation (Taiwan ROC) | 100.00(6) | - | ||||
Konly | Evergen Power Corporation (EGPC) | Solar power generation (Taiwan ROC) | 100.00(6) | - | ||||
ACTW | AUO Crystal (Malaysia) Sdn. Bhd. (ACMK) | Manufacturing and sale of single crystal silicon wafers (Malaysia) | 100.00 | 100.00 | ||||
ACTW and SDMC | M.Setek Co., Ltd. (M.Setek) | Manufacturing and sales of polysilicon and other solar-related products (Japan) | 99.98(4) | 99.92 | ||||
AULB | AU Optronics Corporation America (AUUS) | Sales and sales support of TFT-LCD modules (United States) | 100.00 | 100.00 | ||||
AULB | AU Optronics Corporation Japan (AUJP) | Sales and sales support of TFT-LCD modules (Japan) | 100.00 | 100.00 | ||||
AULB | AU Optronics Europe B.V. (AUNL) | Sales support of TFT-LCD modules (Netherlands) | 100.00 | 100.00 | ||||
AULB | AU Optronics Korea Ltd. (AUKR) | Sales support of TFT-LCD modules (South Korea) | 100.00 | 100.00 | ||||
AULB | AU Optronics Singapore Pte. Ltd. (AUSG) | Holding company and sales support of TFT-LCD modules (Singapore) | 100.00 | 100.00 | ||||
AULB | AU Optronics (Czech) s.r.o. (AUCZ) | Assembly of solar PV modules (Czech Republic) | 100.00 | 100.00 | ||||
AULB | AU Optronics (Shanghai) Co., Ltd. (AUSH) | Sales support of TFT-LCD modules (PRC) | 100.00 | 100.00 | ||||
AULB | AU Optronics (Xiamen) Corp. (AUXM) | Assembly of TFT-LCD modules (PRC) | 100.00 | 100.00 | ||||
AULB | AU Optronics (Suzhou) Corp., Ltd. (AUSZ) | Assembly of TFT-LCD modules (PRC) | 100.00 | 100.00 | ||||
AULB | AU Optronics Manufacturing (Shanghai) Corp. (AUSJ) | Assembly of TFT-LCD modules (PRC) | 100.00 | 100.00 |
Percentage of Ownership (%) | |||||||||||||||
Name of Investor | Subsidiary | Main Activities and Location | 2013.12.31 | 2012.12.31 | 2012.1.1 | ||||||||||
AUO | Ronly Venture Corp. (Ronly) | Venture capital investment (Taiwan ROC) | 100.00 | 100.00 | 100.00 | ||||||||||
AUO | Toppan CFI (Taiwan) Co., Ltd. (Toppan CFI) | Manufacturing and sale of color filters (Taiwan ROC) | 49.00 | (1) | 49.00 | (1) | 49.00 | (1) | |||||||
AUO | Sungen Power Corporation (SGPC) | Solar power generation (Taiwan ROC) | 100.00 | 100.00 | - | ||||||||||
AUO, Konly and Ronly | BriView Corp. (BVTW) | Manufacturing, design and sale of TFT-LCD modules, TV set, backlight modules and related parts (Taiwan ROC) | 68.86 | 68.86 | 68.86 | ||||||||||
AUO, Konly and Ronly | AUO Crystal Corp. (ACTW) | Design, manufacture and sale of solar modules (Taiwan ROC) | 90.84 | 90.84 | 86.40 | ||||||||||
Konly | Darshin Microelectronics Inc. (DSTW) | IC design and sales (Taiwan ROC) | 66.68 | (2) | 66.68 | (2) | 66.67 | ||||||||
ACTW | AUO Crystal (Malaysia) Sdn. Bhd. (ACMK) | Manufacturing and sale of single crystal silicon wafers (Malaysia) | 100.00 | 100.00 | 100.00 | ||||||||||
ACTW | M. Setek Co., Ltd. (M. Setek) | Manufacturing and sales of solar silicon poly, single crystal silicon ingots and solar wafers (Japan) | 99.92 | 99.35 | 93.49 | ||||||||||
AULB | AU Optronics Corporation America (AUUS) | Sales and sales support of TFT-LCD modules (United States) | 100.00 | 100.00 | 100.00 | ||||||||||
AULB | AU Optronics Corporation Japan (AUJP) | Sales and sales support of TFT-LCD modules (Japan) | 100.00 | 100.00 | 100.00 | ||||||||||
AULB | AU Optronics Europe B.V. (AUNL) | Sales support of TFT-LCD modules (Netherlands) | 100.00 | 100.00 | 100.00 | ||||||||||
AULB | AU Optronics Korea Ltd. (AUKR) | Sales support of TFT-LCD modules (South Korea) | 100.00 | 100.00 | 100.00 | ||||||||||
AULB | AU Optronics Singapore Pte. Ltd. (AUSG) | Holding company and sales support of TFT-LCD modules (Singapore) | 100.00 | 100.00 | 100.00 | ||||||||||
AULB | AU Optronics (Czech) s.r.o. (AUCZ) | Assembly of solar PV modules (Czech Republic) | 100.00 | 100.00 | 100.00 | ||||||||||
AULB | AU Optronics (Shanghai) Co., Ltd. (AUSH) | Sales support of TFT-LCD modules (PRC) | 100.00 | 100.00 | 100.00 | ||||||||||
AULB | AU Optronics (Xiamen) Corp. (AUXM) | Assembly of TFT-LCD modules (PRC) | 100.00 | 100.00 | 100.00 |
AULB | AU Optronics (Slovakia) s.r.o. (AUSK) | Repair of TFT-LCD modules; injecting and stamping parts; manufacturing and sale of mold (Slovakia Republic) | 100.00 | 100.00 | ||||
AULB | AFPD Pte., Ltd. (AUST) | Manufacturing LCD panels based on low temperature polysilicon technology (Singapore) | 100.00 | 100.00 | ||||
AULB | Huizhou Bri-King Optronics Co., Ltd. (BKHZ) | Manufacturing and sale of liquid crystal products and related parts (PRC) | 51.00(7) | 51.00 | ||||
AULB | AU Optronics (Kunshan) Co., Ltd. (AUKS) | Manufacturing, assembly and sale of TFT-LCD panels (PRC) | 49.00(1) | 49.00 (1) | ||||
AULB | a.u. Vista Inc. (AUVI) | Research and development and IP related business (United States) | 100.00(6) | - | ||||
AULB and DPTW | BriView (L) Corp. (BVLB) | Holding and trading company (Malaysia) | 100.00(3) | 100.00 | ||||
DPTW | Darwin Precisions (L) Corp. (DPLB) | Holding and trading company (Malaysia) | 100.00(3) | 100.00 | ||||
DPTW | Forhouse International Holding Ltd. (FHVI) | Holding and trading company (BVI) | 100.00(3) | - | ||||
DPTW | Force International Holding Ltd. (Force) | Holding company (BVI) | 100.00(3) | - | ||||
FHVI | Fullhouse Corporation Sdn. Bhd. (Fullhouse) | Manufacturing and sale of electronics dartboard (Malaysia) | 100.00(3)(7) | - | ||||
FHVI | Fortech International Corp. (Fortech) | Holding and trading company (Mauritius) | 100.00(3) | - | ||||
FHVI | Forward Optronics International Corp. (Forward) | Holding company (Samoa) | 100.00(3) | - | ||||
FHVI | Prime Forward International Ltd. (Prime) | Holding company (Samoa) | 100.00(3) | - | ||||
FHVI | Full Luck Precisions Co., Ltd. (Full Luck) | Holding and trading company (Mauritius) | 100.00(3) | - | ||||
Force | Forefront Corporation (Forefront) | Holding company (Mauritius) | 100.00(3) | - | ||||
Forefront | Forthouse Electronics (Suzhou) Co., Ltd. (FHWJ) | Manufacturing and sale of motorized treadmills (PRC) | 100.00(3) | - | ||||
Fortech | Fortech Electronics (Suzhou) Co., Ltd. (FTWJ) | Manufacturing, assembly and sale of TFT-LCD modules, backlight modules and related parts (PRC) | 100.00(3) | - | ||||
Fortech | Fortech Optronics (Xiamen) Co., Ltd. (FTXM) | Manufacturing, assembly and sale of TFT-LCD modules, backlight modules and related parts (PRC) | 100.00(3) | - |
Percentage of Ownership (%) | |||||||||||||||
Name of Investor | Subsidiary | Main Activities and Location | 2013.12.31 | 2012.12.31 | 2012.1.1 | ||||||||||
AULB | AU Optronics (Suzhou) Corp., Ltd. (AUSZ) | Assembly of TFT-LCD modules (PRC) | 100.00 | 100.00 | 100.00 | ||||||||||
AULB | AU Optronics Manufacturing (Shanghai) Corp. (AUSJ) | Assembly of TFT-LCD modules (PRC) | 100.00 | 100.00 | 100.00 | ||||||||||
AULB | AU Optronics (Slovakia) s.r.o. (AUSK) | Sale and repair of TFT-LCD panels and related parts; leasing premise (Slovakia Republic) | 100.00 | 100.00 | 100.00 | ||||||||||
AULB | AFPD Pte., Ltd. (AUST) | Manufacturing LCD panels based on low temperature polysilicon technology (Singapore) | 100.00 | 100.00 | 100.00 | ||||||||||
AULB | BVCH Optronics (Sichuan) Corp.(BVCH) | Assembly and sale of TFT-LCD modules (PRC) | - | (4) | 51.00 | 51.00 | |||||||||
AULB | Huizhou Bri-King Optronics Co., Ltd. (BKHZ) | Assembly and sale of TFT-LCD modules (PRC) | 51.00 | 51.00 | 51.00 | ||||||||||
AULB | AU Optronics (Kunshan) Co., Ltd. (AUKS) | Manufacturing, assembly and sale of TFT-LCD panels (PRC) | 49.00 | (1) | 49.00 | (1) | 49.00 | (1) | |||||||
AULB and BVTW | BriView (L) Corp. (BVLB) | Holding and trading company (Malaysia) | 100.00 | 100.00 | 100.00 | ||||||||||
BVTW | Darwin Precisions (L) Corp. (DPLB) | Holding and trading company (Malaysia) | 100.00 | 100.00 | 100.00 | ||||||||||
DPLB | Darwin Precisions (Hong Kong) Limited (DPHK) | Holding company (Hong Kong) | 100.00 | 100.00 | 100.00 | ||||||||||
DPHK | Darwin Precisions (Suzhou) Corp. (DPSZ) | Manufacturing, assembly, and sale of TFT-LCD modules, backlight modules and related parts (PRC) | 100.00 | 100.00 | 100.00 | ||||||||||
DPHK | Darwin Precisions (Xiamen) Corp.(DPXM) | Manufacturing, assembly, and sale of TFT-LCD modules, backlight modules and related parts (PRC) | 100.00 | 100.00 | 100.00 | ||||||||||
DPHK | Darwin Precisions (Chengdu) Corp. (DPCD) | Manufacturing, assembly, and sale of TFT-LCD modules, backlight modules and related parts (PRC) | 100.00 | (3) | 100.00 | (3) | 100.00 | ||||||||
DPHK | Darwin Precisions (Qingdao) Corp. (DPQD) | Manufacturing, assembly, and sale of TFT-LCD modules, backlight modules and related parts (PRC) | - | (3) | 100.00 | (3) | 100.00 | ||||||||
DPHK | Darwin Precisions (Dongguan) Corp. (DPDG) | Manufacturing, assembly, and sale of TFT-LCD modules, backlight modules and related parts (PRC) | 100.00 | (3) | 100.00 | (3) | 100.00 |
Name of Investor | Name of Subsidiary | Main Activities and Location | Percentage of Ownership (%) | |||||
December 31, 2014 | December 31, 2013 | |||||||
Forward and Fortech | Suzhou Forplax Optronics Co, Ltd. (FPWJ) | Manufacturing and sale of light guide plates (PRC) | 100.00(3) | - | ||||
Prime | Fortech Electronics (Kunshan) Co., Ltd. (FTKS) | Manufacturing, assembly and sale of TFT-LCD modules, backlight modules and related parts (PRC) | 100.00(3) | - | ||||
Full Luck | Full Luck (Wujiang) Precisions, Co, Ltd. (FLWJ) | Manufacturing and sales of precision metal parts (PRC) | 100.00(3) | - | ||||
DPLB | Darwin Precisions (Hong Kong) Limited (DPHK) | Holding company (Hong Kong) | 100.00 | 100.00 | ||||
DPHK | Darwin Precisions (Suzhou) Corp. (DPSZ) | Manufacturing, assembly, and sale of TFT-LCD modules, backlight modules and related parts (PRC) | 100.00 | 100.00 | ||||
DPHK | Darwin Precisions (Xiamen) Corp. (DPXM) | Manufacturing, assembly, and sale of TFT-LCD modules, backlight modules and related parts (PRC) | 100.00 | 100.00 | ||||
DPHK | Darwin Precisions (Chengdu) Corp. (DPCD) | Manufacturing, assembly, and sale of TFT-LCD modules, backlight modules and related parts (PRC) | 100.00(7) | 100.00(7) | ||||
DPHK | Darwin Precisions (Dongguan) Corp. (DPDG) | Manufacturing, assembly, and sale of TFT-LCD modules, backlight modules and related parts (PRC) | -(7) | 100.00(7) | ||||
BVLB | BriView (Kunshan) Co., Ltd. (BVKS) | Manufacturing and sale of liquid crystal products, TV set and related parts (PRC) | 100.00(7) | 100.00(7) | ||||
BVLB | BriView (Hefei) Co., Ltd. (BVHF) | Manufacturing and sale of liquid crystal products, TV set and related parts (PRC) | 100.00 | 100.00 | ||||
BVLB | BriView (Xiamen) Corp. (BVXM) | Manufacturing and sale of liquid crystal products, TV set and related parts (PRC) | 100.00 | 100.00 | ||||
AUSG | AUO Energy (Tianjin) Corp. (AETJ) | Manufacturing and sale of solar modules (PRC) | 100.00 | 100.00 | ||||
AUSG | AUO Green Energy America Corp. (AEUS) | Holding company, sale and sales support of solar modules (United States) | 100.00 | 100.00 | ||||
AUSG | AUO Green Energy Europe B.V. (AENL) | Holding company and sales support of solar modules (Netherlands) | 100.00 | 100.00 | ||||
AENL | AUO Green Energy Germany GmbH (AEDE) | Sales support of solar modules (Germany) | 100.00(8) | 100.00(8) |
Percentage of Ownership (%) | ||||||||||||||
Name of Investor | Subsidiary | Main Activities and Location | 2013.12.31 | 2012.12.31 | 2012.1.1 | |||||||||
BVLB | BriView (Kunshan) Co., Ltd. (BVKS) | Manufacturing and sale of liquid crystal products, TV set and related parts (PRC) | 100.00 | (3) | 100.00 | 100.00 | ||||||||
BVLB | BriView (Hefei) Co., Ltd. (BVHF) | Manufacturing and sale of liquid crystal products, TV set and related parts (PRC) | 100.00 | 100.00 | 100.00 | |||||||||
BVLB | BriView (Xiamen) Corp. (BVXM) | Manufacturing and sale of liquid crystal products, TV set and related parts (PRC) | 100.00 | 100.00 | 100.00 | |||||||||
AUSG | AUO Energy (Suzhou) Corp. (AESZ) | Sale of solar modules (PRC) | - | - | 100.00 | (3) | ||||||||
AUSG | AUO Energy (Tianjin) Corp. (AETJ) | Design, manufacture and sale of solar modules (PRC) | 100.00 | 100.00 | 100.00 | |||||||||
AUSG | AUO Green Energy America Corp. (AEUS) | Holding company, sale and sales support of solar modules (United States) | 100.00 | 100.00 | 100.00 | |||||||||
AUSG | AUO Green Energy Europe B.V. (AENL) | Holding company and sales support of solar modules (Netherlands) | 100.00 | 100.00 | 100.00 | |||||||||
AENL | AUO Green Energy Germany GmbH (AEDE) | Sales support of solar modules (Germany) | 100.00 | (5) | 100.00 | 100.00 |
Note 1: | The Company has the power |
Note 2: |
Note 3: |
Note 4: |
Note 5: |
Note 6: | FGPC was incorporated in May 2014. In addition, EGPC and AUVI were both incorporated in December 2014. |
Note 7: | As part of a business restructuring DPDG was liquidated in March 2014. In addition, DPCD, BVKS, BKHZ and Fullhouse have been resolved by their respective boards of directors for liquidation. The liquidation is still in process for these three entities as of December 31, 2014. |
Note 8: | AEDE has commenced its liquidation process which was still in progress as of December 31, 2013 |
Foreign currency |
(1) | Foreign currency transactions |
(i) | Available-for-sale equity instruments; |
(ii) | Qualifying cash flow hedges. |
(2) | Foreign operations |
Classification of current and non-current assets and liabilities |
(1) | The asset expected to realize, or intends to sell or consume, in its normal operating cycle; |
(2) | The asset primarily held for the purpose of trading; |
(3) | The asset expected to realize within twelve months after the reporting date; or |
(4) | Cash and cash equivalent |
(1) | The liability expected to settle in its normal operating cycle; |
(2) | The liability primarily held for the purpose of trading; |
(3) | The liability is due to be settled within twelve months after the reporting date; or |
(4) | The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments, do not affect its classification. |
Cash and cash equivalents |
Financial Instruments |
(1) | Financial assets |
(i) | Financial assets measured at fair value through profit or loss |
(ii) | Available-for-sale financial assets |
(iii) | Receivables |
(iv) | Impairment of financial assets |
(v) | De-recognition of financial assets |
(2) | Financial liabilities |
(i) | Convertible bonds |
(ii) | Financial liabilities measured at fair value through profit or loss |
Other financial liabilities |
De-recognition of financial liabilities |
Offsetting of financial assets and liabilities |
(3) | Derivative financial instruments and hedge accounting |
Inventories |
Noncurrent assets held for sale |
(k) | Investments in joint ventures |
(l) | Investment property |
Property, plant and equipment |
(1) | Recognition and measurement |
(2) | Reclassification to investment property |
(3) | Subsequent costs |
(4) | Depreciation |
(i) | Buildings: 20~50 years |
(ii) | Machinery and equipment: 3~10 years |
(iii) | Other equipment: 3~6 years |
Long-term prepaid rent |
Leases |
(1) | Lessor |
(2) | Lessee |
Intangible assets |
(1) | Goodwill |
(2) | Research and development |
(3) | Other intangible assets |
(4) | Subsequent expenditure |
(5) | Amortization |
Provisions |
(1) | Warranties |
(2) | Decommissioning obligation |
(3) | Onerous contracts |
(4) | Loss contingencies |
Revenue recognition |
(1) | Goods sold |
(2) | Government grants |
Employee benefits |
(1) | Defined contribution plans |
(2) | Defined benefit plans |
(3) | Short-term employee benefits |
(u) | Share-based payment transactions |
(v) | Income taxes |
(1) | Current income taxes |
(2) | Deferred income taxes |
· | temporary difference on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither taxable profit or loss; |
· | temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and |
· | temporary differences arising on the initial recognition of goodwill. |
Business |
Earnings (loss) per share |
Operating segments |
Use of |
(a) |
Impairment of long-term non-financial assets, other than goodwill |
Recognition of deferred tax assets |
(e) | Revenue recognition |
(f) | Valuation of inventories |
6. | Cash and Cash Equivalents |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Cash, demand deposits and checking accounts | $ | 39,073,951 | 31,604,836 | 26,686,581 | ||||||||
Time deposits within three months maturity date | 29,369,113 | 39,742,679 | 47,122,961 | |||||||||
Government bonds with reverse repurchase agreements | 7,869,208 | 5,308,160 | 16,243,726 | |||||||||
$ | 76,312,272 | 76,655,675 | 90,053,268 |
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Cash on hand, demand deposits and checking accounts | $ | 44,050,305 | 39,073,951 | |||||
Time deposits | 28,441,470 | 29,369,113 | ||||||
Government bonds with reverse repurchase agreements | 9,473,558 | 7,869,208 | ||||||
$ | 81,965,333 | 76,312,272 |
7. | Derivative Financial Instruments and Hedging Instruments |
(1) | Derivative Financial Instruments |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Financial assets measured at fair value through profit or loss Current: | ||||||||||||
Foreign currency forward contracts | $ | 48,850 | 23,621 | 85,621 | ||||||||
Noncurrent: | ||||||||||||
Interest rate swap contracts | $ | - | - | 3 | ||||||||
Options contracts | - | 66 | 172 | |||||||||
$ | - | 66 | 175 | |||||||||
Financial liabilities measured at fair value through profit or loss Current: | ||||||||||||
Foreign currency forward contracts | $ | 420,861 | 804,001 | 17,523 | ||||||||
Noncurrent: | ||||||||||||
Interest rate swap contracts | $ | - | - | 41 | ||||||||
Options contracts | - | 54,000 | 176,185 | |||||||||
$ | - | 54,000 | 176,226 |
Hedging derivative financial liabilities | ||||||||||||
Noncurrent: | ||||||||||||
Interest rate swap contracts | $ | 17,062 | 58,547 | 198,360 |
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Financial assets measured at fair value through profit or loss – current: | ||||||||
Foreign currency forward contracts | $ | 133,412 | 48,850 | |||||
Financial liabilities measured at fair value through profit or loss – current: | ||||||||
Foreign currency forward contracts | $ | 232,879 | 420,861 | |||||
Hedging derivative financial liabilities – noncurrent: | ||||||||
Interest rate swap contracts | $ | 7,093 | 17,062 |
December 31, 2014 | ||||
Contract item | Maturity date | Contract amount | ||
(in thousands) | ||||
Sell USD / Buy NTD | Jan. 2015 – Feb. 2015 | USD222,000 / NTD6,965,393 | ||
Sell USD / Buy JPY | Jan. 2015 – May 2015 | USD86,405 / JPY10,042,510 | ||
Sell NTD / Buy JPY | Jan. 2015 – Apr. 2015 | NTD665,422 / JPY2,490,942 | ||
Sell USD / Buy CNY | Jan. 2015 – May 2015 | USD308,300 / CNY1,914,839 | ||
Sell CNY / Buy USD | Jan. 2015 | CNY93,195 / USD15,000 | ||
Sell EUR / Buy NTD | Jan. 2015 | EUR9,500 / NTD369,218 | ||
Sell JPY / Buy USD | Jan. 2015 – Mar. 2015 | JPY336,496 / USD3,000 | ||
Sell EUR / Buy USD | Mar. 2015 | EUR50,000 / USD61,793 | ||
Sell EUR / Buy JPY | Jan. 2015 – Mar. 2015 | EUR80,500 / JPY11,587,826 | ||
Sell EUR / Buy CZK | Feb. 2015 | EUR3,000 / CZK82,800 | ||
Sell USD / Buy SGD | Jan. 2015 | USD4,520 / SGD5,942 | ||
Sell USD / Buy MYR | Jan. 2015 – Mar. 2015 | USD940 / MYR3,230 |
December 31, 2013 | ||||
Contract item | Maturity date | Contract amount | ||
(in thousands) | ||||
Sell USD / Buy JPY | Jan. 2014 – May 2014 | USD180,199 / JPY18,315,188 | ||
Sell NTD / Buy JPY | Jan. 2014 – Mar. 2014 | NTD435,439 / JPY1,496,285 | ||
Sell USD / Buy CNY | Jan. 2014 – Jun. 2014 | USD239,000 / CNY1,460,592 | ||
Sell EUR / Buy JPY | Jan. 2014 – Feb. 2014 | EUR88,000 / JPY11,976,340 | ||
Sell EUR / Buy CZK | Jan. 2014 | EUR2,600 / CZK71,162 | ||
Sell USD / Buy SGD | Jan. 2014 – Feb. 2014 | USD14,765 / SGD18,479 | ||
Sell USD / Buy MYR | Jan. 2014 – Feb. 2014 | USD1,675 / MYR5,446 |
For the years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net gains (losses) of foreign currency forward and option contracts were as follows: | (in thousands) | |||||||||||
Unrealized gains (losses) | $ | 264,181 | 462,303 | (726,361 | ) | |||||||
Realized losses | (403,096 | ) | (2,185,877 | ) | (534,227 | ) | ||||||
$ | (138,915 | ) | (1,723,574 | ) | (1,260,588 | ) |
(2) | Hedge accounting |
December 31, 2014 | ||||||||
Hedged item | Hedging instrument | Fair value of hedging instrument | Expected period of cash flows | Expected period of recognition in comprehensive income | ||||
(in thousands) | ||||||||
Long-term borrowings with floating interest rate | Interest rate swap contracts | $ (7,093) | Jan. 2015– Aug. 2017 | Jan. 2015– Aug. 2017 |
December 31, 2013 | ||||||||
Hedged item | Hedging instrument | Fair value of hedging instrument | Expected period of cash flows | Expected period of recognition in comprehensive income | ||||
(in thousands) | ||||||||
Long-term borrowings with floating interest rate | Interest rate swap contracts | $ (17,062) | Jan. 2014– Aug. 2017 |
8. | Available-for-sale Financial Assets-noncurrent |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Equity securities | $ | 700,730 | 1,577,024 | 1,924,569 |
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Equity securities | $ | 77,724 | 700,730 |
9. | Notes and Accounts Receivable, net (Including Related and Non-related Parties) |
December 31, | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | January 1, 2012 | 2014 | 2013 | ||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||
Notes receivable | $ | 70,377 | 66,862 | 122,361 | $ | 137,079 | 70,377 | |||||||||||||
Accounts receivable | 44,222,803 | 43,007,898 | 51,942,121 | 60,335,727 | 44,222,803 | |||||||||||||||
Less: allowance for doubtful accounts | (63,652 | ) | (68,150 | ) | (81,925 | ) | (83,240 | ) | (63,652 | ) | ||||||||||
allowance for sales returns and discounts | (595,767 | ) | (458,081 | ) | (451,026 | ) | (825,355 | ) | (595,767 | ) | ||||||||||
$ | 43,633,761 | 42,548,529 | 51,531,531 | $ | 59,564,211 | 43,633,761 | ||||||||||||||
Notes and accounts receivable, net | $ | 40,600,855 | 36,357,450 | 44,747,926 | $ | 55,950,687 | 40,600,855 | |||||||||||||
Receivables from related parties, net | $ | 3,032,906 | 6,191,079 | 6,783,605 | ||||||||||||||||
Accounts receivable from related parties, net | $ | 3,613,524 | 3,032,906 |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Current | $ | 41,811,006 | 35,622,852 | 43,094,120 | ||||||||
Past due 0~60 days | 1,670,551 | 6,829,065 | 7,771,668 | |||||||||
Past due 61~180 days | 139,456 | 78,066 | 569,602 | |||||||||
Past due over 180 days | 76,400 | 86,696 | 178,066 | |||||||||
$ | 43,697,413 | 42,616,679 | 51,613,456 |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Balance at beginning of the year | $ | 68,150 | 81,925 | |||||
Provisions charged to expense | 38,602 | 66,997 | ||||||
Reversals | (37,399 | ) | (72,484 | ) | ||||
Write-offs | - | (1,758 | ) | |||||
Effects of changes in foreign currency exchange rates | (5,701 | ) | (6,530 | ) | ||||
Balance at end of the year | $ | 63,652 | 68,150 |
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Past due less than 60 days | $ | 1,033,662 | 1,670,491 | |||||
Past due 61~180 days | 91,414 | 137,821 | ||||||
Past due over 180 days | 77,637 | 23,355 | ||||||
$ | 1,202,713 | 1,831,667 |
For the years ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Individually assessed for impairment | Collectively assessed for impairment | Individually assessed for impairment | Collectively assessed for impairment | Individually assessed for impairment | Collectively assessed for impairment | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Balance at beginning of the year | $ | - | 63,652 | - | 68,150 | - | 81,925 | |||||||||||||||||
Provisions (reversals) charged to (against) expense | 27,485 | 7,056 | - | 1,203 | - | (5,487 | ) | |||||||||||||||||
Write-offs | (20,090 | ) | - | - | - | - | (1,758 | ) | ||||||||||||||||
Effect of changes in foreign currency exchange rates | 2,939 | 2,198 | - | (5,701 | ) | - | (6,530 | ) | ||||||||||||||||
Balance at end of the year | $ | 10,334 | 72,906 | - | 63,652 | - | 68,150 |
December 31, 2014 | ||||||||||
Underwriting bank | Factoring limit | Amount advanced | Amount sold and derecognized | Principle terms | ||||||
(in thousands) | ||||||||||
Chinatrust Commercial Bank | USD | 230,000 | - | - | See notes(a)~(c) and (e) | |||||
Mizuho Corporate Bank | USD | 90,000 | - | - | See notes(a)~(d) | |||||
Taishin Bank | USD | 180,000 | - | - | See notes(a)~(c) and (e) | |||||
Bank of Taiwan | USD | 250,000 | - | - | See notes(a)~(d) | |||||
Taipei Fubon Bank | USD | 75,000 | - | - | See notes(a)~(c) and (e) | |||||
E. Sun Bank | NTD | 1,800,000 | - | - | See notes(a)~(c) and (e) | |||||
DBS Bank | USD | 114,000 | - | - | See notes(a)~(c) and (e) | |||||
ING Bank | USD | 70,000 | - | - | See notes(a)~(d) | |||||
China Development Industrial Bank | USD | 83,000 | - | USD | 19,163 | See notes(a)~(d) and (f) | ||||
China Development Industrial Bank | NTD | 150,000 | - | - | See notes(a)~(d) and (f) |
December 31, 2013 | |||||||||||
Underwriting bank | Factoring limit | Amount advanced | Amount sold and derecognized | Principle terms | |||||||
(in thousands) | |||||||||||
Chinatrust Commercial Bank | USD | 280,000 | NTD | 2,750,000 | USD | 102,782 | See notes(a)~(c) and (e) | ||||
Citi Bank | USD | 120,000 | - | USD | 80,885 | See notes(a)~(d) | |||||
Mizuho Corporate Bank | USD | 180,000 | USD | 14,139 | USD | 14,139 | See notes(a)~(d) | ||||
Taishin Bank | USD | 180,000 | NTD | 950,000 | USD | 35,372 | See notes(a)~(c) and (e) | ||||
Bank of Taiwan | USD | 250,000 | USD | 97,687 | USD | 107,456 | See notes(a)~(d) | ||||
EUR | 25,990 | EUR | 28,589 | ||||||||
Taipei Fubon Bank | USD | 50,000 | NTD | 1,325,000 | USD | 49,790 | See notes(a)~(c) and (e) | ||||
E.Sun Bank | USD | 60,000 | USD | 18,863 | USD | 20,959 | See notes(a)~(c) and (e) | ||||
DBS Bank | USD | 120,000 | USD | 20,029 | USD | 20,029 | See notes(a)~(c) and (e) | ||||
First Commercial Bank | USD | 120,000 | USD | 38,646 | USD | 38,646 | See notes(a)~(d) and (f) | ||||
China Development Industrial Bank | USD | 60,000 | - | USD | 32,926 | See notes(a)~(d) and (f) |
Note (a): | Under these facilities, the Company transferred accounts receivable to the respective underwriting banks, which are without recourse. |
Note (b): | The Company informed its customers pursuant to the respective facilities to make payment directly to the respective underwriting banks. |
Note (c): | As of December 31, |
Note (d): | To the extent of the amount transferred to the underwriting banks, risks of non-collection or potential payment default by customers in the event of insolvency are borne by respective banks. The Company is not responsible for the collection of receivables subject to these facilities, or for any legal proceedings and costs thereof in collecting these receivables. |
Note (e): | To the extent of the amount |
Note (f): | The aforementioned terms are applicable to the respective underwriting banks, and the Company bears all risks |
10. | Inventories |
December 31, | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | January 1, 2012 | 2014 | 2013 | ||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||
Finished goods | $ | 15,244,321 | 16,710,153 | 19,842,427 | $ | 14,699,840 | 15,244,321 | |||||||||||||
Work-in-progress | 14,372,565 | 17,849,827 | 20,699,320 | 13,627,003 | 14,372,565 | |||||||||||||||
Raw materials | 7,981,108 | 8,026,002 | 7,340,201 | 8,093,305 | 7,981,108 | |||||||||||||||
$ | 37,597,994 | 42,585,982 | 47,881,948 | $ | 36,420,148 | 37,597,994 |
11. | Investments in Equity-accounted Investees |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Associates | $ | 9,238,504 | 10,028,442 | 11,895,620 | ||||||||
Joint ventures | 4,115,357 | 3,790,739 | 4,026,205 | |||||||||
$ | 13,353,861 | 13,819,181 | 15,921,825 |
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Associates | $ | 7,605,802 | 9,238,504 | |||||
Joint ventures | 7,190,268 | 4,115,357 | ||||||
$ | 14,796,070 | 13,353,861 |
(a) | Associates |
December 31, 2013 | December 31, 2012 | January 1, 2012 | Principal place ofbusiness | December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||||||||||
Ownership interest | Amount | Ownership interest | Amount | Ownership interest | Amount | |||||||||||||||||||||||||||||||||||||||
Name of associate | Principal activities | Principal place ofbusiness | Ownership interest | Amount | Ownership interest | Amount | ||||||||||||||||||||||||||||||||||||||
% | (in thousands) | % | (in thousands) | % | (in thousands) | % | (in thousands) | % | (in thousands) | |||||||||||||||||||||||||||||||||||
Lextar Electronics Corp. (“Lextar”) | 26 | $ | 3,081,111 | 42 | 3,565,029 | 43 | 3,400,754 | Manufacturing and sales of Light Emitting Diode | Taiwan ROC | 22 | $ | 3,310,205 | 26 | $ | 3,081,111 | |||||||||||||||||||||||||||||
Forhouse Corporation (“Forhouse”) | 27 | 2,443,215 | 26 | 2,611,416 | 26 | 2,802,253 | ||||||||||||||||||||||||||||||||||||||
Qisda Corporation (“Qisda”) | 10 | 2,550,521 | 10 | 2,391,667 | 10 | 3,349,934 | ODM/OEM of electronic products and hardware-software integration service | Taiwan ROC | 10 | 2,922,387 | 10 | 2,550,521 | ||||||||||||||||||||||||||||||||
Raydium Semiconductor Corporation (“Raydium”) | 15 | 593,629 | 15 | 556,739 | 15 | 514,885 | IC design | Taiwan ROC | 15 | 568,109 | 15 | 593,629 | ||||||||||||||||||||||||||||||||
Daxin Materials Corp. (“Daxin”) | 25 | 460,229 | 25 | 422,111 | 28 | 358,719 | Manufacturing, research, and sales of display and green energy related chemicals | Taiwan ROC | 25 | 469,328 | 25 | 460,229 | ||||||||||||||||||||||||||||||||
Wellypower Optronics Corporation Ltd. (“Wellypower”) | - | - | 9 | 180,763 | 9 | 411,286 | ||||||||||||||||||||||||||||||||||||||
Sipix Technology Inc. (“STI”) | - | - | - | - | 28 | 621,855 | ||||||||||||||||||||||||||||||||||||||
Star River Energy Corp. (“SREC”) | Investments in solar power plant | Taiwan ROC | 35 | 265,458 | - | - | ||||||||||||||||||||||||||||||||||||||
Forhouse Corporation (“Forhouse”) | Manufacturing, design and assembly of backlight modules | Taiwan ROC | - | - | 27 | 2,443,215 | ||||||||||||||||||||||||||||||||||||||
Others | 109,799 | 300,717 | 435,934 | 70,315 | 109,799 | |||||||||||||||||||||||||||||||||||||||
$ | 9,238,504 | 10,028,442 | 11,895,620 | $ | 7,605,802 | $ | 9,238,504 |
December 31, | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | January 1, 2012 | 2014 | 2013 | ||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||
Lextar | $ | 4,361,130 | 4,267,478 | 3,664,269 | $ | 4,298,629 | 4,361,130 | |||||||||||||
Forhouse | 1,408,300 | 1,937,971 | 2,043,905 | |||||||||||||||||
Qisda | 1,374,438 | 1,368,813 | 1,170,054 | 2,728,250 | 1,374,438 | |||||||||||||||
Daxin | 1,472,716 | 1,129,302 | - | 1,056,327 | 1,472,716 | |||||||||||||||
Wellypower | - | 180,763 | 224,237 | |||||||||||||||||
Forhouse | - | 1,408,300 | ||||||||||||||||||
$ | 8,616,584 | 8,884,327 | 7,102,465 | $ | 8,083,206 | 8,616,584 |
December 31, | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | January 1, 2012 | 2014 | 2013 | ||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||
Current assets | $ | 76,841,831 | 74,788,434 | �� | 82,582,687 | $ | 82,657,013 | 76,841,831 | ||||||||||||
Noncurrent assets | 63,829,269 | 68,110,168 | 72,664,923 | 58,594,585 | 63,829,269 | |||||||||||||||
Total assets | 140,671,100 | 142,898,602 | 155,247,610 | 141,251,598 | 140,671,100 | |||||||||||||||
Current liabilities | 64,091,307 | 60,923,301 | 64,982,446 | 66,006,271 | 64,091,307 | |||||||||||||||
Noncurrent liabilities | 23,979,761 | 31,236,657 | 34,519,192 | 22,634,960 | 23,979,761 | |||||||||||||||
Total liabilities | 88,071,068 | 92,159,958 | 99,501,638 | 88,641,231 | 88,071,068 | |||||||||||||||
Net assets | $ | 52,600,032 | 50,738,644 | 55,745,972 | $ | 52,610,367 | 52,600,032 |
For the years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Revenue | $ | 160,541,072 | 168,795,026 | 176,569,116 | ||||||||
Net profit (loss) | $ | 4,679,832 | 2,638,994 | (2,915,181 | ) | |||||||
Other comprehensive income (loss) | $ | 1,004,733 | 4,049,767 | (575,545 | ) |
(b) | Joint ventures |
December 31, 2014 | December 31, 2013 | |||||||||||||||||||
Name of joint ventures | Principal activities | Principal place of business | Ownership interest | Amount | Ownership interest | Amount | ||||||||||||||
% | (in thousands) | % | (in thousands) | |||||||||||||||||
AUO SunPower Sdn. Bhd. (“AUSP”) | Manufacturing and sales of solar power products | Malaysia | 50 | $ | 6,691,123 | 50 | $ | 4,006,593 | ||||||||||||
Others | 499,145 | 108,764 | ||||||||||||||||||
$ | 7,190,268 | $ | 4,115,357 |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Revenue | $ | 168,795,026 | 176,569,116 | |||||
Net profit (loss) | $ | 2,638,994 | (2,915,181 | ) | ||||
Other comprehensive income (loss) | $ | 4,049,767 | (575,545 | ) |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
AUO SunPower Sdn. Bhd. (“AUSP”) | $ | 4,006,593 | 3,790,739 | 3,894,560 | ||||||||
Others | 108,764 | - | 131,645 | |||||||||
$ | 4,115,357 | 3,790,739 | 4,026,205 |
December 31, | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | January 1, 2012 | 2014 | 2013 | ||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||
Current assets | $ | 4,494,503 | 8,669,669 | 8,813,358 | $ | 11,389,894 | 4,494,503 | |||||||||||||
Noncurrent assets | 22,155,684 | 19,628,906 | 21,995,637 | 21,170,300 | 22,155,684 | |||||||||||||||
Total assets | 26,650,187 | 28,298,575 | 30,808,995 | 32,560,194 | 26,650,187 | |||||||||||||||
Current liabilities | 7,925,470 | 2,715,063 | 4,505,492 | 12,410,733 | 7,925,470 | |||||||||||||||
Noncurrent liabilities | 12,694,972 | 19,153,708 | 19,176,371 | 6,951,294 | 12,694,972 | |||||||||||||||
Total liabilities | 20,620,442 | 21,868,771 | 23,681,863 | 19,362,027 | 20,620,442 | |||||||||||||||
Net assets | $ | 6,029,745 | 6,429,804 | 7,127,132 | $ | 13,198,167 | 6,029,745 |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Revenue | $ | 10,129,676 | 10,621,369 | |||||
Net profit | $ | 415,174 | 102,402 | |||||
Other comprehensive income | $ | - | 11,866 |
For the years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Revenue | $ | 18,177,917 | 10,129,676 | 10,621,369 | ||||||||
Net profit | $ | 609,696 | 415,174 | 102,402 | ||||||||
Other comprehensive income | $ | - | - | 11,866 |
12. | Business Combinations |
(a) | Acquisition of subsidiaries |
Impact of acquisition on the operating results of the Company |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Net carrying amounts: | ||||||||||||
Land | $ | 7,556,116 | 8,516,638 | 8,899,614 | ||||||||
Buildings | 99,233,949 | 100,986,291 | 102,447,476 | |||||||||
Machinery and equipment | 138,871,520 | 175,804,026 | 214,340,373 | |||||||||
Other equipment | 5,188,373 | 5,962,502 | 5,715,693 | |||||||||
Prepayments for purchase of land and equipment, and construction in progress | 19,419,049 | 24,248,760 | 27,957,746 | |||||||||
$ | 270,269,007 | 315,518,217 | 359,360,902 |
For the year ended December 31, 2013 | ||||||||||||||||||||||||
Balance, Beginning of Year | Additions | Disposal or write off | Effect of disposal of subsidiaries | Reclassification and effect of change in exchange rate | Balance, End of Year | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Cost: | ||||||||||||||||||||||||
Land | $ | 8,678,182 | - | (41,471 | ) | - | (959,028 | ) | 7,677,683 | |||||||||||||||
Buildings | 126,351,407 | 92,407 | (28,783 | ) | - | 1,687,588 | 128,102,619 | |||||||||||||||||
Machinery and equipment | 766,254,302 | 3,228,421 | (3,902,329 | ) | (114,549 | ) | 13,961,962 | 779,427,807 | ||||||||||||||||
Other equipment | 39,238,456 | 3,303,448 | (6,374,720 | ) | (188,288 | ) | 1,983,097 | 37,961,993 | ||||||||||||||||
940,522,347 | 6,624,276 | (10,347,303 | ) | (302,837 | ) | 16,673,619 | 953,170,102 | |||||||||||||||||
Accumulated depreciation and impairment loss: | ||||||||||||||||||||||||
Land | 161,544 | - | - | - | (39,977 | ) | 121,567 | |||||||||||||||||
Buildings | 25,365,116 | 3,585,528 | (28,009 | ) | - | (53,965 | ) | 28,868,670 | ||||||||||||||||
Machinery and equipment | 590,450,276 | 54,044,997 | (3,761,872 | ) | (68,239 | ) | (108,875 | ) | 640,556,287 | |||||||||||||||
Other equipment | 33,275,954 | 5,282,152 | (6,218,961 | ) | (124,525 | ) | 559,000 | 32,773,620 | ||||||||||||||||
649,252,890 | 62,912,677 | (10,008,842 | ) | (192,764 | ) | 356,183 | 702,320,144 | |||||||||||||||||
Prepayments for purchase of land and equipment, and construction in progress | 24,248,760 | 11,727,517 | (178,307 | ) | - | (16,378,921 | ) | 19,419,049 | ||||||||||||||||
Net carrying amounts | $ | 315,518,217 | 270,269,007 |
(c) | Consideration transferred and identifiable assets acquired and liabilities assumed at the acquisition date |
Fair value | ||||
(in thousands) | ||||
Cash and cash equivalents | $ | 2,763,252 | ||
Accounts receivable and other current assets | 4,812,335 | |||
Accounts payable and other current liabilities | (4,873,057 | ) | ||
Available-for-sale financial assets – non-publicly traded equity | 428,298 | |||
Investments in equity-accounted investees | 399,916 | |||
Property, plant and equipment | 5,956,972 | |||
Prepaid lease payment – noncurrent | 295,369 | |||
Other net liabilities | (663,202 | ) | ||
Long-term loans | (600,000 | ) | ||
Total identifiable net assets acquired | $ | 8,519,883 |
Assets acquired | Valuation techniques | |
Property, plant and equipment | Market comparison technique and cost technique: The valuation model considers quoted market prices for similar items when available, and depreciated replacement cost when appropriate. Depreciated replacement cost reflects adjustments for physical deterioration as well as functional and economic obsolescence. |
(d) | Gain on bargain purchase arising from the acquisition |
Amount | ||||
(in thousands) | ||||
Total consideration for the acquisition | $ | 5,635,970 | ||
Less: Fair value of identifiable net assets | 8,519,883 | |||
Gain on bargain purchase | $ | (2,883,913 | ) |
(e) | Acquisition-related costs |
13. | Property, Plant and Equipment |
For the year ended December 31, 2014 | ||||||||||||||||||||||||
Balance, Beginning of Year | Additions | Disposal or write off | Effect of change in consolidated entities | Reclassification and effect of change in exchange rate | Balance, End of Year | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Cost: | ||||||||||||||||||||||||
Land | $ | 7,677,683 | 1,200 | - | 1,654,242 | (95,053 | ) | 9,238,072 | ||||||||||||||||
Buildings | 128,102,619 | 78,983 | (111,575 | ) | 1,902,642 | 508,818 | 130,481,487 | |||||||||||||||||
Machinery and equipment | 779,427,807 | 1,202,107 | (17,693,988 | ) | 905,074 | 17,433,965 | 781,274,965 | |||||||||||||||||
Other equipment | 37,961,993 | 2,900,224 | (5,125,326 | ) | 459,550 | 1,284,109 | 37,480,550 | |||||||||||||||||
953,170,102 | 4,182,514 | (22,930,889 | ) | 4,921,508 | 19,131,839 | 958,475,074 | ||||||||||||||||||
Accumulated depreciation and impairment loss: | ||||||||||||||||||||||||
Land | 121,567 | 66,046 | - | - | (8,386 | ) | 179,227 | |||||||||||||||||
Buildings | 28,868,670 | 4,484,205 | (48,347 | ) | - | 185,568 | 33,490,096 | |||||||||||||||||
Machinery and equipment | 640,556,287 | 48,744,396 | (17,120,896 | ) | (57,421 | ) | 1,688,154 | 673,810,520 | ||||||||||||||||
Other equipment | 32,773,620 | 5,025,584 | (5,253,005 | ) | - | 447,355 | 32,993,554 | |||||||||||||||||
702,320,144 | 58,320,231 | (22,422,248 | ) | (57,421 | ) | 2,312,691 | 740,473,397 | |||||||||||||||||
Prepayments for purchase of land and equipment, and construction in progress | 19,419,049 | 9,645,867 | (7,548 | ) | 133,638 | (15,377,959 | ) | 13,813,047 | ||||||||||||||||
Net carrying amounts | $ | 270,269,007 | 231,814,724 |
For the year ended December 31, 2013 | ||||||||||||||||||||||||
Balance, Beginning of Year | Additions | Disposal or write off | Effect of change in consolidated entities | Reclassification and effect of change in exchange rate | Balance, End of Year | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Cost: | ||||||||||||||||||||||||
Land | $ | 8,678,182 | - | (41,471 | ) | - | (959,028 | ) | 7,677,683 | |||||||||||||||
Buildings | 126,351,407 | 92,407 | (28,783 | ) | - | 1,687,588 | 128,102,619 | |||||||||||||||||
Machinery and equipment | 766,254,302 | 3,228,421 | (3,902,329 | ) | (114,549 | ) | 13,961,962 | 779,427,807 | ||||||||||||||||
Other equipment | 39,238,456 | 3,303,448 | (6,374,720 | ) | (188,288 | ) | 1,983,097 | 37,961,993 | ||||||||||||||||
940,522,347 | 6,624,276 | (10,347,303 | ) | (302,837 | ) | 16,673,619 | 953,170,102 |
For the year ended December 31, 2012 | For the year ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||||||||||||
Balance, Beginning of Year | Additions | Disposal or write off | Effect of disposal of subsidiaries | Reclassification and effect of change in exchange rate | Balance, End of Year | |||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Cost: | ||||||||||||||||||||||||||||||||||||||||||||||||
Land | $ | 8,899,614 | 1,448 | (68 | ) | - | (222,812 | ) | 8,678,182 | |||||||||||||||||||||||||||||||||||||||
Buildings | 124,039,128 | 1,390,023 | (13,119 | ) | - | 935,375 | 126,351,407 | |||||||||||||||||||||||||||||||||||||||||
Machinery and equipment | 748,342,262 | 9,893,362 | (7,578,334 | ) | - | 15,597,012 | 766,254,302 | |||||||||||||||||||||||||||||||||||||||||
Other equipment | 41,469,424 | 3,497,182 | (7,267,374 | ) | - | 1,539,224 | 39,238,456 | |||||||||||||||||||||||||||||||||||||||||
922,750,428 | 14,782,015 | (14,858,895 | ) | - | 17,848,799 | 940,522,347 | Balance, Beginning of Year | Additions | Disposal or write off | Effect of change in consolidated entities | Reclassification and effect of change in exchange rate | Balance, End of Year | ||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated depreciation and impairment loss: | ||||||||||||||||||||||||||||||||||||||||||||||||
Land | - | 175,676 | - | - | (14,132 | ) | 161,544 | 161,544 | - | - | - | (39,977 | ) | 121,567 | ||||||||||||||||||||||||||||||||||
Buildings | 21,591,652 | 4,168,791 | (8,665 | ) | - | (386,662 | ) | 25,365,116 | 25,365,116 | 3,585,528 | (28,009 | ) | - | (53,965 | ) | 28,868,670 | ||||||||||||||||||||||||||||||||
Machinery and equipment | 534,001,889 | 65,719,053 | (7,150,538 | ) | - | (2,120,128 | ) | 590,450,276 | 590,450,276 | 54,044,997 | (3,761,872 | ) | (68,239 | ) | (108,875 | ) | 640,556,287 | |||||||||||||||||||||||||||||||
Other equipment | 35,753,731 | 7,431,633 | (7,228,443 | ) | - | (2,680,967 | ) | 33,275,954 | 33,275,954 | 5,282,152 | (6,218,961 | ) | (124,525 | ) | 559,000 | 32,773,620 | ||||||||||||||||||||||||||||||||
591,347,272 | 77,495,153 | (14,387,646 | ) | - | (5,201,889 | ) | 649,252,890 | 649,252,890 | 62,912,677 | (10,008,842 | ) | (192,764 | ) | 356,183 | 702,320,144 | |||||||||||||||||||||||||||||||||
Prepayments for purchase of land and equipment, and construction in progress | 27,957,746 | 23,986,337 | - | - | (27,695,323 | ) | 24,248,760 | 24,248,760 | 11,727,517 | (178,307 | ) | - | (16,378,921 | ) | 19,419,049 | |||||||||||||||||||||||||||||||||
Net carrying amounts | $ | 359,360,902 | 315,518,217 | $ | 315,518,217 | 270,269,007 |
Investment Property |
December 31, 2013 | December 31, 2012 | January 1, 2012 | For the year ended December 31, 2014 | |||||||||||||||||||||||||
(in thousands) | Balance, Beginning of Year | Additions | Disposal | Balance, End of Year | ||||||||||||||||||||||||
Net carrying amounts: | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||
Cost: | ||||||||||||||||||||||||||||
Land | $ | 836,960 | 836,960 | 836,960 | $ | 836,960 | - | (371,092 | ) | 465,868 | ||||||||||||||||||
Buildings | 418,254 | 428,624 | 438,994 | 544,421 | - | (544,421 | ) | - | ||||||||||||||||||||
$ | 1,255,214 | 1,265,584 | 1,275,954 | 1,381,381 | - | (915,513 | ) | 465,868 | ||||||||||||||||||||
Accumulated depreciation and impairment loss: | ||||||||||||||||||||||||||||
Buildings | 126,167 | 7,778 | (133,945 | ) | - | |||||||||||||||||||||||
Net carrying amounts | $ | 1,255,214 | 465,868 | |||||||||||||||||||||||||
Fair Value | $ | 2,406,058 | 1,145,098 |
For the year ended December 31, 2013 | For the year ended December 31, 2013 | |||||||||||||||||||||||||||
Balance, Beginning of Year | Additions | Balance, End of Year | Balance, Beginning of Year | Additions | Disposal | Balance, End of Year | ||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||
Cost: | ||||||||||||||||||||||||||||
Land | $ | 836,960 | - | 836,960 | $ | 836,960 | - | - | 836,960 | |||||||||||||||||||
Buildings | 544,421 | - | 544,421 | 544,421 | - | - | 544,421 | |||||||||||||||||||||
1,381,381 | - | 1,381,381 | 1,381,381 | - | - | 1,381,381 | ||||||||||||||||||||||
Accumulated depreciation and impairment loss: | ||||||||||||||||||||||||||||
Buildings | 115,797 | 10,370 | 126,167 | |||||||||||||||||||||||||
Net carrying amounts | $ | 1,265,584 | 1,255,214 | |||||||||||||||||||||||||
Fair Value | $ | 1,461,855 | 2,406,058 |
For the year ended December 31, 2012 | ||||||||||||
Balance, Beginning of Year | Additions | Balance, End of Year | ||||||||||
(in thousands) | ||||||||||||
Cost: | ||||||||||||
Land | $ | 836,960 | - | 836,960 | ||||||||
Buildings | 544,421 | - | 544,421 | |||||||||
1,381,381 | - | 1,381,381 | ||||||||||
Accumulated depreciation and impairment loss: | ||||||||||||
Buildings | 105,427 | 10,370 | 115,797 | |||||||||
Net carrying amounts | $ | 1,275,954 | 1,265,584 | |||||||||
Fair value | $ | 1,502,640 | 1,461,855 |
For the year ended December 31, 2013 | ||||||||||||||||
Balance, Beginning of Year | Additions | Disposal | Balance, End of Year | |||||||||||||
(in thousands) | ||||||||||||||||
Accumulated depreciation and impairment loss: | ||||||||||||||||
Buildings | 115,797 | 10,370 | - | 126,167 | ||||||||||||
Net carrying amounts | $ | 1,265,584 | 1,255,214 | |||||||||||||
Fair Value | $ | 1,461,855 | 2,406,058 |
15. | Intangible Assets |
For the year ended December 31, 2014 | ||||||||||||||||||||
Balance, Beginning of Year | Addition | Effect of disposal of subsidiaries | Effect of change in exchange rate | Balance, End of Year | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Cost: | ||||||||||||||||||||
Patent and technology fee | $ | 11,306,138 | 291,337 | - | 520 | 11,597,995 | ||||||||||||||
Accumulated amortization: | ||||||||||||||||||||
Patent and technology fee | 6,873,596 | 838,259 | - | 385 | 7,712,240 | |||||||||||||||
Net carrying amounts | $ | 4,432,542 | 3,885,755 |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Net carrying amounts: | ||||||||||||
Goodwill | $ | - | - | 175,581 | ||||||||
Patent and technology fee | 4,432,542 | 3,652,303 | 3,971,926 | |||||||||
$ | 4,432,542 | 3,652,303 | 4,147,507 |
For the year ended December 31, 2013 | ||||||||||||||||||||
Balance, Beginning of Year | Addition | Effect of disposal of subsidiaries | Effect of change in exchange rate | Balance, End of Year | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Cost: | ||||||||||||||||||||
Goodwill | $ | 175,581 | - | - | - | 175,581 | ||||||||||||||
Patent and technology fee | 9,659,452 | 1,654,318 | (11,419 | ) | 3,787 | 11,306,138 | ||||||||||||||
9,835,033 | 1,654,318 | (11,419 | ) | 3,787 | 11,481,719 | |||||||||||||||
Accumulated amortization and impairment loss: | ||||||||||||||||||||
Goodwill | 175,581 | - | - | - | 175,581 | |||||||||||||||
Patent and technology fee | 6,007,149 | 874,233 | (11,419 | ) | 3,633 | 6,873,596 | ||||||||||||||
6,182,730 | 874,233 | (11,419 | ) | 3,633 | 7,049,177 | |||||||||||||||
Net carrying amounts | $ | 3,652,303 | 4,432,542 |
For the year ended December 31, 2012 | ||||||||||||||||||||
Balance, Beginning of Year | Addition | Effect of disposal of subsidiaries | Effect of change in exchange rate | Balance, End of Year | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Cost: | ||||||||||||||||||||
Goodwill | $ | 175,581 | - | - | - | 175,581 | ||||||||||||||
Patent and technology fee | 9,214,031 | 445,292 | - | 129 | 9,659,452 | |||||||||||||||
9,389,612 | 445,292 | - | 129 | 9,835,033 | ||||||||||||||||
Accumulated amortization and impairment loss: | ||||||||||||||||||||
Goodwill | - | 175,581 | - | - | 175,581 | |||||||||||||||
Patent and technology fee | 5,242,105 | 764,976 | - | 68 | 6,007,149 | |||||||||||||||
5,242,105 | 940,557 | - | 68 | 6,182,730 | ||||||||||||||||
Net carrying amounts | $ | 4,147,507 | 3,652,303 |
For the year ended December 31, 2013 | ||||||||||||||||||||
Balance, Beginning of Year | Addition | Effect of disposal of subsidiaries | Effect of change in exchange rate | Balance, End of Year | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Cost: | ||||||||||||||||||||
Patent and technology fee | $ | 9,659,452 | 1,654,318 | (11,419 | ) | 3,787 | 11,306,138 | |||||||||||||
Accumulated amortization: | ||||||||||||||||||||
Patent and technology fee | 6,007,149 | 874,233 | (11,419 | ) | 3,633 | 6,873,596 | ||||||||||||||
Net carrying amounts | $ | 3,652,303 | 4,432,542 |
Other Assets |
December 31, | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | January 1, 2012 | 2014 | 2013 | ||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||
Refundable and overpaid tax | $ | 3,142,553 | 3,030,402 | 2,477,953 | $ | 2,972,774 | 3,142,553 | |||||||||||||
Long-term prepaid rents | 2,034,542 | 1,960,446 | 2,065,934 | 2,328,232 | 2,034,542 | |||||||||||||||
Prepayments for purchases | 1,203,100 | 1,215,718 | 1,435,237 | 1,257,714 | 1,203,100 | |||||||||||||||
Refundable deposits | 140,386 | 5,075,980 | 5,183,039 | 132,170 | 140,386 | |||||||||||||||
Others | 1,958,250 | 2,354,948 | 1,911,374 | 2,216,224 | 1,958,250 | |||||||||||||||
8,478,831 | 13,637,494 | 13,073,537 | 8,907,114 | 8,478,831 | ||||||||||||||||
Less: current | (4,336,937 | ) | (9,599,504 | ) | (8,490,013 | ) | (4,407,556 | ) | (4,336,937 | ) | ||||||||||
Noncurrent | $ | 4,141,894 | 4,037,990 | 4,583,524 | $ | 4,499,558 | 4,141,894 |
Short-term Borrowings |
December 31, | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | January 1, 2012 | 2014 | 2013 | ||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||
Unsecured borrowings | $ | 3,457,174 | 8,620,050 | 7,850,793 | $ | 381,322 | 3,457,174 | |||||||||||||
Unused facility | $ | 24,271,139 | 21,147,309 | 23,901,952 | ||||||||||||||||
Unused credit facility | $ | 37,269,758 | 24,271,139 | |||||||||||||||||
Interest rate | 1.06%~ 2.31% | 1.04%~ 2.00% | 1.20%~ 7.93% | 1.65%~ 2.34% | 1.06%~ 2.31% |
January 1, 2012 | ||||
(in thousands) | ||||
Secured bonds payable | $ | 3,500,000 | ||
Unsecured bonds payable | 64,383 | |||
3,564,383 | ||||
Less: current portion | (3,564,383 | ) | ||
Noncurrent | $ | - | ||
For the year ended December 31, 2012 | ||||
Interest expense | $ | 65,467 |
18. | Convertible Bonds Payable |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Par value of ECB 4 | $ | 24,840,000 | 24,840,000 | 24,840,000 | ||||||||
Unamortized discount | (63,734 | ) | (116,720 | ) | (158,377 | ) | ||||||
Accrued interest payable | 1,707,610 | 1,319,370 | 738,628 | |||||||||
Accumulated purchase amount | (6,365,250 | ) | (3,105,000 | ) | (3,105,000 | ) | ||||||
Effect of change in exchange rates | (604,806 | ) | (1,339,567 | ) | (528,123 | ) | ||||||
Convertible bonds payable | $ | 19,513,820 | 21,598,083 | 21,787,128 | ||||||||
Embedded derivative- conversion rights classified as fair value recognized through profit or loss | $ | - | - | - |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Interest expense (including amortization of discount) | $ | 641,437 | 659,836 |
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Par value of ECB 4 | $ | 24,840,000 | 24,840,000 | |||||
Unamortized discount | (19,623 | ) | (63,734 | ) | ||||
Accrued interest payable | 1,972,627 | 1,707,610 | ||||||
Accumulated purchase amount | (11,979,090 | ) | (6,365,250 | ) | ||||
Effect of change in exchange rates | 296,114 | (604,806 | ) | |||||
Convertible bonds payable | $ | 15,110,028 | 19,513,820 | |||||
Embedded derivative- conversion rights classified as fair value recognized through profit or loss | $ | - | - |
For the years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Interest expense (including amortization of discount) | $ | 826,665 | 641,437 | 659,836 |
Conversion method | Bondholders may, at any time from 41 days after issuance to 10 days before maturity, convert ECB4 into common shares or ADSs of the Company. | |
Conversion price | Original price at NT$40.74. The conversion price was adjusted to NT$ | |
6, 2014. | ||
Exchange rate | US$:NT$ exchange rate of NT$30.778 / US$1.00 | |
Redemption terms | Unless previously redeemed, purchased and cancelled, or converted, bonds are redeemable on maturity at a redemption price equal to 115.34% of the unpaid principal amount thereof (redemption rate on maturity is 2.875%, calculated semi-annually). | |
(a) | Effective from the third anniversary of issuance, AUO may, redeem the outstanding bonds at the early redemption amount, in whole or in part, if the closing price (translated into U.S. dollars at the prevailing rate) of its common shares on the Taiwan Stock Exchange is at least 130% of the conversion price for a period of 20 out of 30 consecutive trading days. | |
(b) | AUO may redeem the total amount of outstanding bonds in whole at the early redemption amount in the event that 90% of the bonds have been previously redeemed, converted, or purchased and cancelled. | |
(c) | AUO may redeem the total amount of outstanding bonds in whole at the early redemption amount if as a result of certain changes relating to the tax laws in the ROC or such other jurisdiction in which AUO is then organized, AUO is required to pay additional amounts. | |
Repurchase terms | (a) | Bondholders bear the right to request AUO to repurchase bonds, in whole or in part, at the early redemption amount in the event that AUO’s common shares cease to be listed or admitted to trading on the Taiwan Stock Exchange |
(b) | Bondholders bear the right to request AUO to repurchase bonds, in whole or in part, at the early redemption amount when one or more persons, acting in concert, acquire legal or beneficial ownership of over 50% of AUO’s capital stock. A “person” aforementioned does not include AUO’s directors and AUO’s majority-owned direct or indirect subsidiaries. |
19. | Long-term Borrowings |
Bank or agent bank | Durations | December 31, 2013 | December 31, 2012 | January 1, 2012 | Durations | December 31, 2014 | December 31, 2013 | |||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Syndicated loans: | ||||||||||||||||||||||||
Bank of Taiwan and others | From Dec. 2009 to Oct. 2016 | $ | 23,768,732 | 38,813,100 | ||||||||||||||||||||
Bank of Taiwan and others | From Sep. 2011 to Sep. 2016 | 29,860,950 | 44,878,550 | |||||||||||||||||||||
Bank of Taiwan and others | From Dec. 2009 to Oct. 2016 | $ | 38,813,100 | 51,600,800 | 58,000,000 | From Jan. 2014 to Jan. 2019 | 26,900,000 | - | ||||||||||||||||
Bank of Taiwan and others | From Sep. 2011 to Sep. 2016 | 44,878,550 | 45,000,000 | 12,000,000 | From Feb. 2013 to Aug. 2017 | 17,284,757 | 17,300,000 | |||||||||||||||||
Bank of Taiwan and others | From Sep. 2006 to Sep. 2014 | 10,665,600 | 21,331,200 | 31,996,800 | From Sep. 2006 to Sep. 2014 | - | 10,665,600 | |||||||||||||||||
Mega International Commercial Bank and others | From Jan. 2010 to Jan. 2014 | 11,211,980 | 19,080,000 | 27,000,000 | From Jan. 2010 to Jan. 2014 | - | 11,211,980 | |||||||||||||||||
Mizuho Corporate Bank and others | From Jun. 2011 to Jun. 2016 | 9,996,000 | 11,840,500 | 7,804,000 | From Jun. 2011 to Jun. 2016 | 5,816,563 | 9,996,000 | |||||||||||||||||
Credit Agricole Corporate and Investment Bank and others | From Nov. 2010 to Nov. 2015 | 8,648,640 | 10,485,360 | 10,904,400 | From Nov. 2010 to Nov. 2015 | 4,574,304 | 8,648,640 | |||||||||||||||||
Mizuho Corporate Bank and others | From Jun. 2011 to Jun. 2016 | 5,712,000 | 6,766,000 | 6,828,500 | From Jun. 2011 to Jun. 2016 | 3,323,750 | 5,712,000 | |||||||||||||||||
Mega International Commercial Bank and others | From Jul. 2006 to Jul. 2013 | - | 5,400,000 | 10,800,000 | ||||||||||||||||||||
First Bank and others | From Feb. 2012 to Feb. 2017 | 4,770,000 | 4,400,000 | - | ||||||||||||||||||||
ABN-AMRO Bank and others | From Aug. 2006 to Aug. 2013 | - | 2,543,434 | 4,779,194 | ||||||||||||||||||||
Bank of Taiwan and others | From Feb. 2013 to Aug. 2017 | 17,300,000 | - | - | ||||||||||||||||||||
Bank of Taiwan and others | From Dec. 2005 to Dec. 2012 | - | - | 8,221,400 | ||||||||||||||||||||
First Commercial Bank and others | From Feb. 2012 to Feb. 2017 | 5,267,846 | 4,770,000 | |||||||||||||||||||||
Standard Chartered Bank and others | From Sep. 2014 to Mar. 2019 | 1,111,810 | - | |||||||||||||||||||||
Unsecured loans | From Mar. 2007 to Dec. 2018 | 6,654,601 | 10,647,559 | 14,214,885 | From Jun. 2010 to Nov. 2019 | 8,238,079 | 6,654,601 | |||||||||||||||||
Mortgage loans | From Feb. 2006 to Aug. 2020 | 3,347,506 | 3,813,559 | 6,407,890 | From Mar. 2010 to Jan. 2016 | 1,415,760 | 3,347,506 | |||||||||||||||||
$ | 161,997,977 | 192,908,412 | 198,957,069 | 127,562,551 | 161,997,977 | |||||||||||||||||||
Less: transaction costs | (260,802 | ) | - | - | (366,124 | ) | (260,802 | ) | ||||||||||||||||
161,737,175 | 192,908,412 | 198,957,069 | 127,196,427 | 161,737,175 | ||||||||||||||||||||
Less: current portion | (62,763,024 | ) | (45,490,589 | ) | (42,868,289 | ) | (41,507,062 | ) | (62,763,024 | ) | ||||||||||||||
$ | 98,974,151 | 147,417,823 | 156,088,780 | $ | 85,689,365 | 98,974,151 | ||||||||||||||||||
Unused credit facility | $ | 34,653,389 | 7,232,213 | 45,881,909 | $ | 33,731,308 | 34,653,389 | |||||||||||||||||
Interest rate range | 1.40%~ 6.77% | 0.658%~ 7.315% | 0.645%~ 7.935% | 1.34%~ 6.765% | 1.40%~ 6.77% |
20. | Provisions |
Warranties | Litigation and claims | Others | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at January 1, 2014 | $ | 2,524,135 | 8,678,670 | 270,712 | 11,473,517 | |||||||||||
Additions | 598,379 | 2,712,239 | - | 3,310,618 | ||||||||||||
Usage | (452,440 | ) | (4,296,472 | ) | - | (4,748,912 | ) | |||||||||
Reversals | (1,960 | ) | - | - | (1,960 | ) | ||||||||||
Effect of change in exchange rate | 398 | 223,655 | 15,650 | 239,703 | ||||||||||||
Balance at December 31, 2014 | 2,668,512 | 7,318,092 | 286,362 | 10,272,966 | ||||||||||||
Less: current | (1,378,187 | ) | (7,318,092 | ) | - | (8,696,279 | ) | |||||||||
Noncurrent | $ | 1,290,325 | - | 286,362 | 1,576,687 |
Warranties | Litigation and claims | Others | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at January 1, 2013 | $ | 2,680,723 | 26,168,055 | 262,563 | 29,111,341 | |||||||||||
Additions | 348,608 | 3,458,751 | - | 3,807,359 | ||||||||||||
Usage | (353,633 | ) | (21,226,890 | ) | - | (21,580,523 | ) | |||||||||
Reversals | (152,824 | ) | - | - | (152,824 | ) | ||||||||||
Effect of change in exchange rate | 1,261 | 278,754 | 8,149 | 288,164 | ||||||||||||
Balance at December 31, 2013 | 2,524,135 | 8,678,670 | 270,712 | 11,473,517 | ||||||||||||
Less: current | (1,531,807 | ) | (4,812,307 | ) | - | (6,344,114 | ) | |||||||||
Noncurrent | $ | 992,328 | 3,866,363 | 270,712 | 5,129,403 |
Warranties | Litigation and claims | Others | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at January 1, 2012 | $ | 2,685,337 | 23,812,513 | 92,432 | 26,590,282 | |||||||||||
Additions | 648,785 | 6,879,138 | 173,683 | 7,701,606 | ||||||||||||
Usage | (547,503 | ) | (4,117,800 | ) | - | (4,665,303 | ) | |||||||||
Reversals | (104,798 | ) | (223,895 | ) | - | (328,693 | ) | |||||||||
Effect of change in exchange rate | (1,098 | ) | (181,901 | ) | (3,552 | ) | (186,551 | ) | ||||||||
Balance at December 31, 2012 | 2,680,723 | 26,168,055 | 262,563 | 29,111,341 | ||||||||||||
Less: current | (1,566,426 | ) | (18,886,555 | ) | - | (20,452,981 | ) | |||||||||
Noncurrent | $ | 1,114,297 | 7,281,500 | 262,563 | 8,658,360 | |||||||||||
Balance at January 1, 2013 | $ | 2,680,723 | 26,168,055 | 262,563 | 29,111,341 | |||||||||||
Additions | 348,608 | 3,458,751 | - | 3,807,359 | ||||||||||||
Usage | (353,633 | ) | (21,226,890 | ) | - | (21,580,523 | ) | |||||||||
Reversals | (152,824 | ) | - | - | (152,824 | ) | ||||||||||
Effect of change in exchange rate | 1,261 | 278,754 | 8,149 | 288,164 | ||||||||||||
Balance at December 31, 2013 | 2,524,135 | 8,678,670 | 270,712 | 11,473,517 | ||||||||||||
Less: current | (1,531,807 | ) | (4,812,307 | ) | - | (6,344,114 | ) | |||||||||
Noncurrent | $ | 992,328 | 3,866,363 | 270,712 | 5,129,403 | |||||||||||
Current | $ | 1,594,308 | 23,812,513 | - | 25,406,821 | |||||||||||
Noncurrent | 1,091,029 | - | 92,432 | 1,183,461 | ||||||||||||
Balance at January 1, 2012 | $ | 2,685,337 | 23,812,513 | 92,432 | 26,590,282 |
(a) | Provisions for warranties |
(b) | Provisions for litigation and claims |
21. | Operating Leases |
(a) | Lessees |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Less than one year | $ | 930,764 | 855,996 | 1,009,189 | ||||||||
Between one and five years | 2,741,583 | 1,608,999 | 1,885,667 | |||||||||
More than five years | 4,103,809 | 3,682,790 | 4,078,436 | |||||||||
$ | 7,776,156 | 6,147,785 | 6,973,292 |
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Less than one year | $ | 938,525 | 930,764 | |||||
Between one and five years | 2,679,819 | 2,741,583 | ||||||
More than five years | 3,596,150 | 4,103,809 | ||||||
$ | 7,214,494 | 7,776,156 |
(b) | Lessor |
December 31, | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | January 1, 2012 | 2014 | 2013 | ||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||
Less than one year | $ | 31,167 | 60,607 | 29,941 | $ | 8,052 | 31,167 | |||||||||||||
Between one and five years | 32,208 | 52,034 | 27,776 | 32,208 | 32,208 | |||||||||||||||
More than five years | 111,386 | 119,438 | 13,888 | 103,334 | 111,386 | |||||||||||||||
$ | 174,761 | 232,079 | 71,605 | $ | 143,594 | 174,761 |
22. | Employee Benefits |
(a) | Defined benefit plans |
(1) | Recognized liabilities for defined benefit obligations at the reporting date were as follows: |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Present value of defined benefit obligations | $ | (2,490,854 | ) | (2,468,402 | ) | (2,075,995 | ) | |||||
Fair value of plan assets | 1,707,081 | 1,599,329 | 1,500,839 | |||||||||
Net defined benefit liability | $ | (783,773 | ) | (869,073 | ) | (575,156 | ) |
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Present value of defined benefit obligations | $ | (2,510,735 | ) | (2,490,854 | ) | |||
Fair value of plan assets | 1,919,312 | 1,707,081 | ||||||
Net defined benefit liability | $ | (591,423 | ) | (783,773 | ) |
(2) | Movement in net defined benefit liability |
Defined benefit obligation | Fair value of plan assets | Net defined benefit liability | Defined benefit obligation | Fair value of plan assets | Net defined benefit liability | |||||||||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, | $ | (2,468,402 | ) | (2,075,995 | ) | 1,599,329 | 1,500,839 | (869,073 | ) | (575,156 | ) | $ | (2,490,854 | ) | (2,468,402 | ) | 1,707,081 | 1,599,329 | (783,773 | ) | (869,073 | ) | ||||||||||||||||||||||||||
Included in profit or loss | ||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | (21,205 | ) | (23,395 | ) | - | - | (21,205 | ) | (23,395 | ) | (14,055 | ) | (21,205 | ) | - | - | (14,055 | ) | (21,205 | ) | ||||||||||||||||||||||||||||
Interest cost | (38,832 | ) | (36,500 | ) | - | - | (38,832 | ) | (36,500 | ) | (48,600 | ) | (38,832 | ) | - | - | (48,600 | ) | (38,832 | ) | ||||||||||||||||||||||||||||
Expected return on plan assets | - | - | 27,988 | 26,325 | 27,988 | 26,325 | - | - | 34,443 | 27,988 | 34,443 | 27,988 | ||||||||||||||||||||||||||||||||||||
(60,037 | ) | (59,895 | ) | 27,988 | 26,325 | (32,049 | ) | (33,570 | ) | (62,655 | ) | (60,037 | ) | 34,443 | 27,988 | (28,212 | ) | (32,049 | ) | |||||||||||||||||||||||||||||
Included in OCI | ||||||||||||||||||||||||||||||||||||||||||||||||
Remeasurements (loss) gain: | ||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial (loss) gain arising from: | ||||||||||||||||||||||||||||||||||||||||||||||||
- demographic assumptions | (498,012 | ) | (296,456 | ) | - | - | (498,012 | ) | (296,456 | ) | (143,568 | ) | (498,012 | ) | - | - | (143,568 | ) | (498,012 | ) | ||||||||||||||||||||||||||||
- financial assumptions | 359,705 | (76,014 | ) | - | - | 359,705 | (76,014 | ) | 140,804 | 359,705 | - | - | 140,804 | 359,705 | ||||||||||||||||||||||||||||||||||
- experience adjustment | 111,095 | 16,395 | - | - | 111,095 | 16,395 | 45,043 | 111,095 | - | - | 45,043 | 111,095 | ||||||||||||||||||||||||||||||||||||
Return on plan assets excluding interest income | - | - | (8,071 | ) | (13,464 | ) | (8,071 | ) | (13,464 | ) | - | - | 5,548 | (8,071 | ) | 5,548 | (8,071 | ) | ||||||||||||||||||||||||||||||
(27,212 | ) | (356,075 | ) | (8,071 | ) | (13,464 | ) | (35,283 | ) | (369,539 | ) | 42,279 | (27,212 | ) | 5,548 | (8,071 | ) | 47,827 | (35,283 | ) | ||||||||||||||||||||||||||||
Other | ||||||||||||||||||||||||||||||||||||||||||||||||
Contributions paid by the employer | - | - | 105,289 | 95,996 | 105,289 | 95,996 | ||||||||||||||||||||||||||||||||||||||||||
Benefits paid | 28,860 | 17,930 | (17,454 | ) | (10,367 | ) | 11,406 | 7,563 | ||||||||||||||||||||||||||||||||||||||||
Effect of changes in exchange rates and others | 35,937 | 5,633 | - | - | 35,937 | 5,633 | ||||||||||||||||||||||||||||||||||||||||||
64,797 | 23,563 | 87,835 | 85,629 | 152,632 | 109,192 | |||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, | $ | (2,490,854 | ) | (2,468,402 | ) | 1,707,081 | 1,599,329 | (783,773 | ) | (869,073 | ) |
Defined benefit obligation | Fair value of plan assets | Net defined benefit liability | ||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||
Effect of acquisition of subsidiary | (17,657 | ) | - | 69,490 | - | 51,833 | - | |||||||||||||||||
Contributions paid by the employer | - | - | 104,204 | 105,289 | 104,204 | 105,289 | ||||||||||||||||||
Benefits paid | 11,891 | 28,860 | (1,454 | ) | (17,454 | ) | 10,437 | 11,406 | ||||||||||||||||
Effect of changes in exchange rates and others | 6,261 | 35,937 | - | - | 6,261 | 35,937 | ||||||||||||||||||
495 | 64,797 | 172,240 | 87,835 | 172,735 | 152,632 | |||||||||||||||||||
Balance at December 31, | $ | (2,510,735 | ) | (2,490,854 | ) | 1,919,312 | 1,707,081 | (591,423 | ) | (783,773 | ) |
(3) | Plan assets |
Fair value of plan assets (%) | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Cash | 19 | 23 | ||||||
Equity instruments | 50 | 45 | ||||||
Debt instruments | 31 | 32 | ||||||
100 | 100 |
(4) | Defined benefit obligation |
(i) | Principal actuarial assumptions |
2013 | 2012 | As of December 31, | ||||||
2014 | 2013 | |||||||
Discount rate | 0.48%~2.00% | 0.594%~1.75% | 0.54%~2.25% | 0.48%~2.00% | ||||
Expected long-term rate of return on plan assets | 0.00%~2.00% | 0.00%~1.75% | 0.00%~2.25% | 0.00%~2.00% | ||||
Rate of increase in future compensation levels | 1.19%~3.79% | 1.19%~3.00% | ||||||
Rate of increase in future salary | 1.19%~3.79% | 1.19%~3.79% |
(ii) | Sensitivity analysis |
December 31, 2013 | December 31, 2014 | |||||||||||||||
Changes in assumptions | Changes in assumptions | |||||||||||||||
+ 0.25% | - 0.25% | + 0.25% | - 0.25% | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Discount rate | (142,249 | ) | 151,840 | $ | (136,629 | ) | 145,486 | |||||||||
Rate of compensation increase | 150,060 | (141,333 | ) | |||||||||||||
Rate of increase in future salary | 144,141 | (136,043 | ) |
(b) | Defined contribution |
23. |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Current income tax expense: | ||||||||
Current year | $ | 1,293,445 | 846,477 | |||||
Adjustment to prior years and others | 124,659 | 107,943 | ||||||
1,418,104 | 954,420 | |||||||
Deferred income tax expense (benefit): | ||||||||
Temporary differences | (126,932 | ) | 114,685 | |||||
Investment tax credit and income tax loss carryforwards | 67,992 | 54,879 | ||||||
(58,940 | ) | 169,564 | ||||||
Total income tax expense | $ | 1,359,164 | 1,123,984 |
For the year ended December 31, 2013 | ||||||||||||
Before tax | Tax (expense)benefit | Net of tax | ||||||||||
(in thousands) | ||||||||||||
Foreign operations - foreign currency translation differences | $ | 3,011,724 | (76,097 | ) | 2,935,627 | |||||||
Unrealized gains on available-for-sale financial assets | 449,043 | - | 449,043 | |||||||||
Cash flow hedges | 41,485 | - | 41,485 | |||||||||
Defined benefit plan actuarial losses | (35,283 | ) | 467 | (34,816 | ) | |||||||
Equity-accounted investees – share of other comprehensive income | 131,926 | - | 131,926 | |||||||||
Realized gain on sales of securities transferred to profit or loss | (524,690 | ) | - | (524,690 | ) | |||||||
Net current-year changes | $ | 3,074,205 | (75,630 | ) | 2,998,575 |
For the year ended December 31, 2012 | ||||||||||||
Before tax | Tax benefit | Net of tax | ||||||||||
(in thousands) | ||||||||||||
Foreign operations - foreign currency translation differences | $ | (1,174,931 | ) | 32,575 | (1,142,356 | ) | ||||||
Unrealized gains on available-for-sale financial assets | 191,474 | - | 191,474 | |||||||||
Cash flow hedges | 140,576 | - | 140,576 | |||||||||
Defined benefit plan actuarial losses | (369,539 | ) | 1,029 | (368,510 | ) | |||||||
Equity-accounted investees – share of other comprehensive loss | (282,016 | ) | - | (282,016 | ) | |||||||
Realized gain on sales of securities transferred to profit or loss | (122,987 | ) | - | (122,987 | ) | |||||||
Net current-year changes | $ | (1,617,423 | ) | 33,604 | (1,583,819 | ) |
For the years ended December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Rate | Amount | Rate | Amount | |||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Profit (loss) before income taxes | $ | 5,236,038 | (51,494,063 | ) | ||||||||||||
Expected income tax expense (benefit) | 17.00% | $ | 890,125 | 17.00% | (8,753,991 | ) | ||||||||||
Tax on repatriation of subsidiaries’ earnings | 2.06% | 108,002 | (0.99%) | 511,750 | ||||||||||||
Effect of different subsidiaries income tax rate | (8.38%) | (438,738 | ) | 7.53% | (3,876,803 | ) | ||||||||||
Effect of changes in statutory income tax rate | (1.45%) | (75,763 | ) | (0.36%) | 184,516 | |||||||||||
Effect of change of unrecognized deductible temporary differences, net operating loss carryforwards, and investment tax credits | 8.75% | 458,390 | (22.38%) | 11,523,405 | ||||||||||||
Permanent differences | (2.47%) | (129,316 | ) | (0.02%) | 11,963 | |||||||||||
Loss from domestic long-term investment | 1.42% | 74,377 | (2.84%) | 1,464,036 | ||||||||||||
Tax holiday | 0% | - | 0.38% | (193,401 | ) | |||||||||||
Tax on undistributed retained earnings | 7.19% | 376,234 | (0.12%) | 64,031 | ||||||||||||
Adjustments to prior year | 1.77% | 92,565 | (0.27%) | 140,212 | ||||||||||||
Others | 0.06% | 3,288 | (0.09%) | 48,266 | ||||||||||||
Actual income tax expense | $ | 1,359,164 | 1,123,984 | |||||||||||||
Actual effective tax rate | 25.96% | (2.18%) |
Deferred tax assets | Deferred tax liabilities | Total | ||||||||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | January 1, 2012 | December 31, 2013 | December 31, 2012 | January 1, 2012 | December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||
Investment tax credits | $ | - | 4,039 | 5,694 | - | - | - | - | 4,039 | 5,694 | ||||||||||||||||||||||||||
Net operating loss carryforwards-regular tax | 150,694 | 211,512 | 265,348 | - | - | - | 150,694 | 211,512 | 265,348 | |||||||||||||||||||||||||||
Unrealized loss and expenses | 147,034 | 160,750 | 69,416 | (9,638 | ) | (9,379 | ) | (4,001 | ) | 137,396 | 151,371 | 65,415 | ||||||||||||||||||||||||
Temporary differences of revenue recognition between financial reporting and tax accounting | 2,243 | 905 | 579 | - | - | - | 2,243 | 905 | 579 | |||||||||||||||||||||||||||
Inventories | 3,264 | 4,446 | 2,469 | - | - | - | 3,264 | 4,446 | 2,469 | |||||||||||||||||||||||||||
Foreign investment losses (gains) under the equity method | - | - | - | (275,452 | ) | (365,490 | ) | (318,494 | ) | (275,452 | ) | (365,490 | ) | (318,494 | ) | |||||||||||||||||||||
Actuarial loss on defined benefit plans | 1,496 | 1,029 | - | - | - | - | 1,496 | 1,029 | - | |||||||||||||||||||||||||||
Foreign operations – foreign currency translation differences | - | - | - | (90,722 | ) | (14,625 | ) | (47,200 | ) | (90,722 | ) | (14,625 | ) | (47,200 | ) | |||||||||||||||||||||
Others | 773,899 | 683,169 | 497,768 | (444,318 | ) | (426,908 | ) | (76,499 | ) | 329,581 | 256,261 | 421,269 | ||||||||||||||||||||||||
Deferred tax assets (liabilities) | $ | 1,078,630 | 1,065,850 | 841,274 | (820,130 | ) | (816,402 | ) | (446,194 | ) | 258,500 | 249,448 | 395,080 |
January 1, 2012 | Recognized in profit or loss | Recognized in other comprehensive income | Effect of exchange rate and others | December 31, 2012 | Recognized in profit or loss | Recognized in other comprehensive income | Effect of exchange rate and others | December 31, 2013 | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||
Investment tax credits | $ | 5,694 | (1,655 | ) | - | - | 4,039 | (4,039 | ) | - | - | - | ||||||||||||||||||||||||
Net operating loss carryforwards-regular tax | 265,348 | (53,223 | ) | - | (613 | ) | 211,512 | (63,953 | ) | - | 3,135 | 150,694 | ||||||||||||||||||||||||
Unrealized loss and expenses | 65,415 | 87,624 | - | (1,668 | ) | 151,371 | (18,994 | ) | - | 5,019 | 137,396 | |||||||||||||||||||||||||
Temporary differences of revenue recognition between financial reporting and tax accounting | 579 | 326 | - | - | 905 | 1,338 | - | - | 2,243 | |||||||||||||||||||||||||||
Inventories | 2,469 | 2,013 | - | (36 | ) | 4,446 | (802 | ) | - | (380 | ) | 3,264 | ||||||||||||||||||||||||
Foreign investment losses (gains) under the equity method | (318,494 | ) | (46,996 | ) | - | - | (365,490 | ) | 90,038 | - | - | (275,452 | ) | |||||||||||||||||||||||
Actuarial loss on defined benefit plans | - | - | 1,029 | - | 1,029 | - | 467 | - | 1,496 | |||||||||||||||||||||||||||
Foreign operations – foreign currency translation differences | (47,200 | ) | - | 32,575 | - | (14,625 | ) | - | (76,097 | ) | - | (90,722 | ) | |||||||||||||||||||||||
Others | 421,269 | (157,653 | ) | - | (7,355 | ) | 256,261 | 55,352 | - | 17,968 | 329,581 | |||||||||||||||||||||||||
Total | $ | 395,080 | (169,564 | ) | 33,604 | (9,672 | ) | 249,448 | 58,940 | (75,630 | ) | 25,742 | 258,500 |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Unused investment tax credits | $ | 4,102,544 | 6,903,184 | 13,564,037 | ||||||||
Unused income tax loss carryforwards | 27,646,756 | 26,672,557 | 17,074,649 | |||||||||
Goodwill | 485,601 | 662,305 | 838,919 | |||||||||
Others | 9,865,548 | 11,067,008 | 9,656,760 | |||||||||
$ | 42,100,449 | 45,305,054 | 41,134,365 |
Unused investment tax credits | Unused income tax loss carryforwards | |||||||
(in thousands) | ||||||||
Expiration at the year: | ||||||||
2014 | $ | 2,756,462 | - | |||||
2015 | 73,518 | - | ||||||
2018 | - | - | ||||||
2019 | - | 5,279,673 | ||||||
2020 | - | 745,181 | ||||||
2021 | - | 10,019,791 | ||||||
2022 | - | 10,345,495 | ||||||
2023 | 30,453 | 1,256,616 | ||||||
No expiration | 1,242,111 | - | ||||||
$ | 4,102,544 | 27,646,756 |
Capital and Other Components of Equity |
(a) | Common stock |
(b) | Capital surplus |
December 31, | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | January 1, 2012 | 2014 | 2013 | ||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||
From common stock | $ | 54,103,486 | 51,794,831 | 51,794,831 | $ | 52,756,091 | 54,103,486 | |||||||||||||
From convertible bonds | 6,049,862 | 6,797,012 | 6,797,012 | 6,049,862 | 6,049,862 | |||||||||||||||
From merger and others | 349,664 | 53,924,140 | 56,395,945 | 452,088 | 349,664 | |||||||||||||||
$ | 60,503,012 | 112,515,983 | 114,987,788 | $ | 59,258,041 | 60,503,012 |
(c) | Legal reserve |
(d) | Distribution of earnings and dividend policy |
(1) |
(2) |
(3) | all or a portion of the remaining |
For fiscal year 2013 | ||||||||
Appropriation of earnings | Dividends per share | |||||||
(in thousands, except for per share data) | ||||||||
Legal reserve | $ | 401,750 | ||||||
Cash dividends to shareholders | 96,242 | $ | 0.01 | |||||
$ | 497,992 |
For Fiscal Year 2013 | For fiscal year 2014 | |||||||||||||||
Appropriation of Earnings | Dividends Per Share | Appropriation of earnings | Dividends per share | |||||||||||||
(in thousands, except for per share data) | (in thousands, except for per share data) | |||||||||||||||
Legal capital reserve | $ | 401,749 | ||||||||||||||
Legal reserve | $ | 1,762,847 | ||||||||||||||
Cash dividends to shareholders | 1,443,637 | $ | 0.15 | 4,812,122 | $ | 0.5 | ||||||||||
$ | 1,845,386 | $ | 6,574,969 |
(e) | Other components of equity |
(1) | Cumulative translation differences |
(2) | Unrealized gains and losses on cash flow hedges |
(3) | Unrealized gains and losses on financial instruments |
(f) | Non-controlling interests |
December 31, | For the years ended December 31, | |||||||||||||||||||
2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||
Balance at the beginning of the year | $ | 14,062,612 | 15,870,764 | $ | 14,036,520 | 14,062,612 | 15,870,764 | |||||||||||||
Equity attributable to non-controlling interests: | ||||||||||||||||||||
Profit (loss) for the year | 72,722 | (1,290,976 | ) | 370,610 | 72,722 | (1,290,976 | ) | |||||||||||||
Adjustment of changes in ownership of subsidiaries | 45,969 | 464,052 | 65,253 | 45,969 | 464,052 | |||||||||||||||
Foreign currency translation differences, net of tax | 419,687 | 436,746 | (156,976 | ) | ||||||||||||||||
Unrealized gains (losses) on available-for-sale financial assets | (387 | ) | 331 | (880 | ) | (387 | ) | 331 | ||||||||||||
Actuarial losses of defined benefit plans, net of tax | (1,160 | ) | (2,560 | ) | ||||||||||||||||
Actuarial losses on defined benefit plans, net of tax | (198 | ) | (1,160 | ) | (2,560 | ) | ||||||||||||||
Proceeds from subsidiaries capital increase | - | 2,452,786 | 28,740 | - | 2,452,786 | |||||||||||||||
Cash dividends from subsidiaries | (174,208 | ) | (214,829 | ) | (256,050 | ) | (174,208 | ) | (214,829 | ) | ||||||||||
Foreign currency translation differences, net of tax | 436,746 | (156,976 | ) | |||||||||||||||||
Return of subsidiaries capital | (114,948 | ) | (3,060,000 | ) | - | (114,948 | ) | (3,060,000 | ) | |||||||||||
Loss of control of subsidiaries and others | (290,826 | ) | 20 | |||||||||||||||||
Acquisition or loss of control of subsidiaries and others | 4,665,572 | (290,826 | ) | 20 | ||||||||||||||||
Balance at the end of the year | $ | 14,036,520 | 14,062,612 | $ | 19,329,254 | 14,036,520 | 14,062,612 |
24. | Share-based Payments |
(a) | Employee stock option plans |
(1) | DPTW Option Plan |
For the year ended December 31, 2014 | ||||||||
Number of options (in thousands) | Weighted-average exercise price (per share) | |||||||
Outstanding at January 1 | 8,994 | $ | 25.49 | |||||
Options expired | (2,484 | ) | 25.49 | |||||
Outstanding at December 31 | 6,510 | 25.49 | ||||||
Exercisable at December 31 | 4,882.5 |
Plan | Grant date | Total number of options issued (in thousands) | Contractual life of options | Exercisable period | Original exercise price (per share) | Adjusted exercise price (per share) | |||||||||||
2011 Employee stock option plan | Jan. 6, 2011 | 10,000 | Jan. 6, 2011 –Jan. 6, 2017 | After Jan. 6, 2013 | $ | 29.2 | $ | 25.49 |
(2) | ACTW Option Plan |
For the years ended December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Number of options (in thousands) | Weighted- average exercise price (per share) | Number of options (in thousands) | Weighted- average exercise price (per share) | |||||||||||||
Outstanding at January 1 | 17,792 | $ | 10 | 20,000 | $ | 10 | ||||||||||
Options granted | 20,000 | 10 | - | - | ||||||||||||
Options exercised | (86 | ) | 10 | - | - | |||||||||||
Options expired | (764 | ) | - | (2,208 | ) | - | ||||||||||
Outstanding at December 31 | 36,942 | 10 | 17,792 | 10 | ||||||||||||
Exercisable at December 31 | 8,428 | - |
Plan | Grant date | Total number of options issued (in thousands) | Contractual life of options | Exercisable period | Exercise price (per share) | ||||||||
2012 Employee stock option plan | Sep. 1, 2012 | 20,000 | Sep.1, 2012 – Aug. 30, 2017 | After Aug. 30, 2014 | $ | 10 | |||||||
2014 Employee stock option plan | Sep. 1, 2014 | 20,000 | Sep.1, 2014 – Aug. 30, 2019 | After Aug. 30, 2016 | $ | 10 |
(b) | Fair value of stock options |
DPTW Option Plan | ACTW Option Plan | ||
Share price/market price at the grant date | $7.49 | $0.20 - 0.34 | |
Expected volatility | 29.00% | 38.88% - 45.40% | |
Expected continuing period | 6 years | 5 years | |
Risk-free interest rate | 1.00% | 0.89% - 1.16% |
25. | Revenue |
For the years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Sale of goods | $ | 402,159,981 | 407,629,049 | 370,718,257 | ||||||||
Other operating revenue | 6,018,769 | 8,733,956 | 7,752,678 | |||||||||
$ | 408,178,750 | 416,363,005 | 378,470,935 |
26. | The Nature of Expenses |
(a) | Depreciation of property, plant and equipment |
For the years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Recognized in cost of sales | $ | 51,354,308 | 58,089,678 | 70,189,143 | ||||||||
Recognized in operating expenses(i) | 4,702,383 | 4,663,466 | 4,311,950 | |||||||||
$ | 56,056,691 | 62,753,144 | 74,501,093 |
(b) | Amortization of intangible assets |
For the years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Recognized in cost of sales | $ | 834,842 | 870,884 | 764,420 | ||||||||
Recognized in operating expenses(i) | 3,417 | 3,349 | 556 | |||||||||
$ | 838,259 | 874,233 | 764,976 |
(c) | Employee benefits expenses |
For the years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Salaries and wages | $ | 34,897,210 | 30,540,058 | 28,765,060 | ||||||||
Labor and health insurances | 1,702,698 | 1,623,319 | 1,515,294 | |||||||||
Retirement benefits | 2,178,226 | 1,911,815 | 1,922,739 | |||||||||
Other employee benefits | 606,298 | 665,230 | 876,050 | |||||||||
$ | 39,384,432 | 34,740,422 | 33,079,143 | |||||||||
Employee benefits expense summarized by function | ||||||||||||
Recognized in cost of sales | $ | 30,376,538 | 26,540,781 | 24,835,374 | ||||||||
Recognized in operating expenses(i) | 9,007,894 | 8,199,641 | 8,243,769 | |||||||||
$ | 39,384,432 | 34,740,422 | 33,079,143 |
(i) | Operating expenses are inclusive of selling and distribution expenses, general and administrative expenses and research and development expenses. |
27. | Other Income |
For the years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Interest income on bank deposits | $ | 431,215 | 285,404 | 390,919 | ||||||||
Interest income on government bonds with reverse repurchase agreements and others | 37,175 | 43,956 | 85,198 | |||||||||
Rental income, net | 447,062 | 331,015 | 408,521 | |||||||||
Insurance compensation | 138,206 | 404,371 | 460,975 | |||||||||
Dividend income | 4,350 | 2,855 | 422,727 | |||||||||
Grants | 452,246 | 637,386 | 583,752 | |||||||||
Others | 651,853 | 743,477 | 839,451 | |||||||||
$ | 2,162,107 | 2,448,464 | 3,191,543 |
28. | Other Gains and Losses |
For the years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Foreign exchange gains, net | $ | 853,552 | 2,642,219 | 1,988,284 | ||||||||
Losses on valuation of financial assets and liabilities measured at fair value through profit or loss, net | (138,915 | ) | (1,723,574 | ) | (1,260,588 | ) | ||||||
Gains on disposals of investments and financial assets, net | 713,222 | 1,813,751 | 614,285 | |||||||||
Gains on disposals of investments in subsidiaries | 90,702 | 23,744 | - | |||||||||
Gains (losses) on disposals of property, plant and equipment, net | (307,630 | ) | 70,569 | (389,008 | ) | |||||||
Gain on disposal of investment properties | 279,729 | - | - | |||||||||
Impairment losses on investments and financial assets, net | (107,494 | ) | (596,102 | ) | (1,782,414 | ) | ||||||
Impairment losses on property, plant and equipment and investment property, net | (2,263,540 | ) | (159,532 | ) | (3,169,644 | ) | ||||||
Gain on bargain purchase | 2,883,913 | - | - | |||||||||
Litigation expenses and other losses | (2,805,342 | ) | (3,247,468 | ) | (6,666,055 | ) | ||||||
$ | (801,803 | ) | (1,176,393 | ) | (10,665,140 | ) |
29. | Finance Costs |
For the years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Interest expense on bonds | $ | 826,665 | 641,437 | 725,303 | ||||||||
Interest expense on long-term borrowings | 3,034,502 | 3,951,168 | 4,734,927 | |||||||||
Interest expense on short-term borrowings | 183,966 | 190,227 | 270,983 | |||||||||
$ | 4,045,133 | 4,782,832 | 5,731,213 |
30. | Income Taxes |
(a) | The components of income tax expense (benefit) for the years ended December 31, 2014, 2013 and 2012 were as follows: |
For the years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Current income tax expense (benefit): | ||||||||||||
Current year | $ | 2,851,999 | 1,293,445 | 846,477 | ||||||||
Adjustment to prior years and others | (307,728 | ) | 124,659 | 107,943 | ||||||||
2,544,271 | 1,418,104 | 954,420 | ||||||||||
Deferred income tax expense (benefit): | ||||||||||||
Temporary differences | 617,328 | (126,932 | ) | 114,685 | ||||||||
Investment tax credit and tax losses carryforwards | 81,621 | 67,992 | 54,879 | |||||||||
698,949 | (58,940 | ) | 169,564 | |||||||||
Total income tax expense | $ | 3,243,220 | 1,359,164 | 1,123,984 |
(b) | Income taxes recognized directly in other comprehensive income for the years ended December 31, 2014, 2013 and 2012 were as follows: |
For the year ended December 31, 2014 | ||||||||||||
Before tax | Tax (expense) benefit | Net of tax | ||||||||||
(in thousands) | ||||||||||||
Foreign operations – foreign currency translation differences | $ | 2,314,635 | (86,211 | ) | 2,228,424 | |||||||
Unrealized gains on available-for-sale financial assets | 88,408 | - | 88,408 | |||||||||
Cash flow hedges | 9,969 | - | 9,969 | |||||||||
Actuarial gain (loss) on defined benefit plans | 47,827 | 622 | 48,449 | |||||||||
Equity-accounted investees – share of other comprehensive income | 120,545 | - | 120,545 | |||||||||
Realized gain on sales of securities transferred to profit or loss | (318,079 | ) | - | (318,079 | ) | |||||||
Net current-year changes | $ | 2,263,305 | (85,589 | ) | 2,177,716 |
For the year ended December 31, 2013 | ||||||||||||
Before tax | Tax (expense) benefit | Net of tax | ||||||||||
(in thousands) | ||||||||||||
Foreign operations – foreign currency translation differences | $ | 3,011,724 | (76,097 | ) | 2,935,627 | |||||||
Unrealized gains on available-for-sale financial assets | 449,043 | - | 449,043 | |||||||||
Cash flow hedges | 41,485 | - | 41,485 | |||||||||
Actuarial gain (loss) on defined benefit plans | (35,283 | ) | 467 | (34,816 | ) | |||||||
Equity-accounted investees – share of other comprehensive income | 131,926 | - | 131,926 | |||||||||
Realized gain on sales of securities transferred to profit or loss | (524,690 | ) | - | (524,690 | ) | |||||||
Net current-year changes | $ | 3,074,205 | (75,630 | ) | 2,998,575 |
For the year ended December 31, 2012 | ||||||||||||
Before tax | Tax (expense) benefit | Net of tax | ||||||||||
(in thousands) | ||||||||||||
Foreign operations – foreign currency translation differences | $ | (1,174,931 | ) | 32,575 | (1,142,356 | ) | ||||||
Unrealized gains on available-for-sale financial assets | 191,474 | - | 191,474 | |||||||||
Cash flow hedges | 140,576 | - | 140,576 | |||||||||
Actuarial gain (loss) on defined benefit plans | (369,539 | ) | 1,029 | (368,510 | ) | |||||||
Equity-accounted investees – share of other comprehensive loss | (282,016 | ) | - | (282,016 | ) | |||||||
Realized gain on sales of securities transferred to profit or loss | (122,987 | ) | - | (122,987 | ) | |||||||
Net current-year changes | $ | (1,617,423 | ) | 33,604 | (1,583,819 | ) |
(c) | Reconciliation of the expected income tax expense (benefit) calculated based on the ROC statutory income tax rate compared with the actual income tax expense (benefit) as reported in the consolidated statements of comprehensive income (loss) for the years ended December 31, 2014, 2013 and 2012, was as follows: |
For the years ended December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Rate | Amount | Rate | Amount | Rate | Amount | |||||||||||||||||||
(in thousands) | (in thousands) | (in thousands) | ||||||||||||||||||||||
Profit (loss) before income taxes | $ | 19,980,459 | $ | 5,236,028 | $ | (51,494,063 | ) | |||||||||||||||||
Expected income tax expense (benefit) | 17.00% | 3,396,678 | 17.00% | 890,125 | 17.00% | (8,753,991 | ) | |||||||||||||||||
Tax on repatriation of subsidiaries’ earnings | - | - | 2.06% | 108,002 | (0.99% | ) | 511,750 | |||||||||||||||||
Effect of different subsidiaries income tax rate | (8.21% | ) | (1,640,097 | ) | (8.38% | ) | (438,738 | ) | 7.53% | (3,876,803 | ) | |||||||||||||
Tax-exempt income | (2.43% | ) | (485,715 | ) | - | - | - | - | ||||||||||||||||
Effect of changes in statutory income tax rate | (0.47% | ) | (94,076 | ) | (1.45% | ) | (75,763 | ) | (0.36% | ) | 184,516 | |||||||||||||
Effect of change of unrecognized deductible temporary differences, tax losses carryforwards, and investment tax credits | (0.55% | ) | (110,481 | ) | 8.75% | 458,390 | (22.38% | ) | 11,523,405 | |||||||||||||||
Permanent differences | 1.78% | 356,613 | (2.47% | ) | (129,316 | ) | (0.02% | ) | 11,963 | |||||||||||||||
Loss from domestic long-term investment | 2.46% | 491,914 | 1.42% | 74,377 | (2.84% | ) | 1,464,036 | |||||||||||||||||
Tax holiday | - | - | - | - | 0.38% | (193,401 | ) | |||||||||||||||||
Tax on undistributed retained earnings | 8.55% | 1,708,860 | 7.19% | 376,234 | (0.12% | ) | 64,031 | |||||||||||||||||
Adjustments to prior year | (1.91% | ) | (381,435 | ) | 1.77% | 92,565 | (0.27% | ) | 140,212 | |||||||||||||||
Others | - | 959 | 0.06% | 3,288 | (0.09% | ) | 48,266 | |||||||||||||||||
Income tax expense | $ | 3,243,220 | $ | 1,359,164 | $ | 1,123,984 | ||||||||||||||||||
Effective tax rate | 16.23% | 25.96% | (2.18% | ) |
(d) | The components of deferred tax assets and liabilities were as follows: |
Deferred tax assets | Deferred tax liabilities | Total | ||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | December 31, 2014 | December 31, 2013 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Tax losses carryforwards | $ | 75,701 | 150,694 | - | - | 75,701 | 150,694 | |||||||||||||||||
Unrealized loss and expenses | 185,988 | 147,034 | (7,901 | ) | (9,638 | ) | 178,087 | 137,396 | ||||||||||||||||
Temporary differences of revenue recognition between financial reporting and tax accounting | 1,015 | 2,243 | - | - | 1,015 | 2,243 | ||||||||||||||||||
Inventories | 8,777 | 3,264 | - | - | 8,777 | 3,264 | ||||||||||||||||||
Foreign investment losses (gains) under the equity method | - | - | (1,263,537 | ) | (275,452 | ) | (1,263,537 | ) | (275,452 | ) | ||||||||||||||
Actuarial loss (gain) on defined benefit plans | 2,117 | 1,496 | - | - | 2,117 | 1,496 | ||||||||||||||||||
Foreign operations – foreign currency translation differences | - | - | �� | (328,099 | ) | (90,722 | ) | (328,099 | ) | (90,722 | ) | |||||||||||||
Unrealized gains on available-for-sale financial assets | - | - | (908 | ) | - | (908 | ) | - | ||||||||||||||||
Others | 916,489 | 773,899 | (859,394 | ) | (444,318 | ) | 57,095 | 329,581 | ||||||||||||||||
Deferred tax assets (liabilities) | $ | 1,190,087 | 1,078,630 | (2,459,839 | ) | (820,130 | ) | (1,269,752 | ) | 258,500 |
(e) | Changes in deferred tax assets and liabilities were as follows: |
January 1, 2013 | Recognized in profit or loss | Recognized in other comprehensive income | Effect of exchange rate and others | December 31, 2013 | Recognized in profit or loss | Recognized in other comprehensive income | Effect of change in consolidated entities, exchange rate and others | December31, 2014 | ||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||
Investment tax credits | $ | 4,039 | (4,039 | ) | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Tax losses carry forwards | 211,512 | (63,953 | ) | - | 3,135 | 150,694 | (81,621 | ) | - | 6,628 | 75,701 | |||||||||||||||||||||||||
Unrealized loss and expenses | 151,371 | (18,994 | ) | - | 5,019 | 137,396 | 36,391 | - | 4,300 | 178,087 | ||||||||||||||||||||||||||
Temporary differences of revenue recognition between financial reporting and tax accounting | 905 | 1,338 | - | - | 2,243 | (1,228 | ) | - | - | 1,015 | ||||||||||||||||||||||||||
Inventories | 4,446 | (802 | ) | - | (380 | ) | 3,264 | 2,076 | - | 3,437 | 8,777 | |||||||||||||||||||||||||
Foreign investment losses (gains) under the equity method | (365,490 | ) | 90,038 | - | - | (275,452 | ) | (339,961 | ) | - | (648,124 | ) | (1,263,537 | ) | ||||||||||||||||||||||
Actuarial loss (gain) on defined benefit plans | 1,029 | - | 467 | - | 1,496 | - | 622 | (1 | ) | 2,117 | ||||||||||||||||||||||||||
Foreign operations – foreign currency translation differences | (14,625 | ) | - | (76,097 | ) | - | (90,722 | ) | - | (86,211 | ) | (151,166 | ) | (328,099 | ) | |||||||||||||||||||||
Unrealized gains on available-for-sale financial assets | - | - | - | - | - | - | - | (908 | ) | (908 | ) | |||||||||||||||||||||||||
Others | 256,261 | 55,352 | - | 17,968 | 329,581 | (314,606 | ) | - | 42,120 | 57,095 | ||||||||||||||||||||||||||
Total | $ | 249,448 | 58,940 | (75,630 | ) | 25,742 | 258,500 | (698,949 | ) | (85,589 | ) | (743,714 | ) | (1,269,752 | ) |
(f) | Unrecognized deferred tax assets |
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Unused investment tax credits | $ | 1,549,053 | 4,102,544 | |||||
Unused tax losses carryforwards | 26,277,326 | 27,646,756 | ||||||
Goodwill | 309,075 | 485,601 | ||||||
Inventories write-down | 722,934 | 869,788 | ||||||
Difference in depreciation expense for tax and financial purposes | 3,089,425 | 2,913,915 | ||||||
Others | 6,752,499 | 6,081,845 | ||||||
$ | 38,700,312 | 42,100,449 |
Unused investment tax credits | Unused tax losses carryforwards | |||||||
(in thousands) | ||||||||
Expiration at the year: | ||||||||
2015 | $ | 73,517 | - | |||||
2017 | 28,036 | - | ||||||
2019 | - | 2,241,973 | ||||||
2020 | - | 707,328 | ||||||
2021 | - | 9,566,714 | ||||||
2022 | - | 10,316,226 | ||||||
2023 | - | 1,817,552 | ||||||
2024 | - | 1,627,533 | ||||||
No expiration | 1,447,500 | - | ||||||
$ | 1,549,053 | 26,277,326 |
(g) | Assessments by the tax authorities |
(h) | The integrated income tax system |
31. | Earnings (Loss) per Share |
(a) | Basic earnings (loss) per share for the years ended December 31, 2014, 2013 and 2012 were calculated as follows: |
For the years ended December 31, | For the years ended December 31, | |||||||||||||||||||
2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||
(in thousands, except for per share data) | (in thousands, except for per share data) | |||||||||||||||||||
Profit (loss) attributable to AUO’s stockholders | $ | 3,804,142 | (51,327,071 | ) | $ | 16,366,629 | 3,804,142 | (51,327,071 | ) | |||||||||||
Weighted-average number of common shares outstanding during the year: | ||||||||||||||||||||
Issued common shares at beginning of year | 8,827,046 | 8,827,046 | 9,624,245 | 8,827,046 | 8,827,046 | |||||||||||||||
Effect of ADSs issued in May 2013 | 522,001 | - | - | 522,001 | - | |||||||||||||||
Weighted-average number of common shares (basic) | 9,349,047 | 8,827,046 | 9,624,245 | 9,349,047 | 8,827,046 | |||||||||||||||
Basic earnings (loss) per share | $ | 0.41 | (5.81 | ) | $ | 1.70 | 0.41 | (5.81 | ) |
(b) | Diluted earnings per share for the years ended December 31, 2014 and 2013 was calculated as follows: |
For the years ended December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands, except for per share data) | ||||||||
Profit attributable to AUO’s stockholders | $ | 16,366,629 | 3,804,142 | |||||
Weighted-average number of common shares outstanding during the year (including the effect of dilutive potential common stock): | ||||||||
Weighted-average number of common shares (basic) | 9,624,245 | 9,349,047 | ||||||
Effect of employee stock bonus | 74,138 | 61,881 | ||||||
Weighted-average number of common shares (diluted) | 9,698,383 | 9,410,928 | ||||||
Diluted earnings per share | $ | 1.69 | 0.40 |
For the year ended December 31, 2013 | ||||
(in thousands, except for per share data) | ||||
Profit attributable to AUO’s stockholders | $ | 3,804,142 | ||
Weighted-average number of common shares outstanding during the year (including the effect of dilutive potential common stock): | ||||
Weighted-average number of common shares (basic) | 9,349,047 | |||
Effect of employee stock bonus | 61,881 | |||
Weighted-average number of common shares (diluted) | 9,410,928 | |||
Diluted earnings per share | $ | 0.40 |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Sale of goods | $ | 407,629,049 | 370,718,257 | |||||
Other operating revenue | 8,733,956 | 7,752,678 | ||||||
$ | 416,363,005 | 378,470,935 |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Changes in inventories | $ | 4,987,988 | 5,295,965 | |||||
Purchase of raw materials, merchandise and others | 246,263,207 | 256,750,838 | ||||||
Depreciation and amortization(1) | 63,627,377 | 75,266,069 | ||||||
Labor costs | 36,848,221 | 34,938,264 | ||||||
Utility expense | 14,037,928 | 14,312,194 | ||||||
Repairs & maintenance | 10,950,079 | 8,308,521 | ||||||
Rental and local tax expense | 3,045,216 | 2,696,178 | ||||||
Shipping costs | 2,970,313 | 3,105,088 | ||||||
Professional service fee | 2,019,584 | 2,612,537 | ||||||
Safety and environmental protection fee | 1,158,229 | 941,127 | ||||||
Supplies and others | 994,138 | 1,142,481 | ||||||
Miscellaneous expense | 614,790 | 777,637 | ||||||
Insurance expense | 554,825 | 463,421 | ||||||
Science Park management fee | 427,554 | 379,989 | ||||||
Others | 19,571,035 | 10,088,940 | ||||||
Total | $ | 408,070,484 | 417,079,249 |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Interest income on bank deposits | $ | 285,404 | 390,919 | |||||
Interest income on government bonds with reverse repurchase agreements and others | 43,956 | 85,198 | ||||||
Rental income | 331,015 | 408,521 | ||||||
Compensation income | 404,371 | 460,975 | ||||||
Dividend income | 2,855 | 422,727 | ||||||
Grants | 637,386 | 583,752 | ||||||
Others | 743,477 | 839,451 | ||||||
$ | 2,448,464 | 3,191,543 |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Foreign exchange gains, net | $ | 2,642,219 | 1,988,284 | |||||
Losses on valuation of financial assets and liabilities measured at fair value through profit or loss, net | (1,723,574 | ) | (1,260,588 | ) | ||||
Gains on disposals of investments and financial assets, net | 1,813,751 | 614,285 | ||||||
Gains on disposals of investments in subsidiaries | 23,744 | - | ||||||
Gains (losses) on disposals of property, plant and equipment, net | 70,569 | (389,008 | ) | |||||
Impairment losses on investments and financial assets, net | (596,102 | ) | (1,782,414 | ) | ||||
Impairment losses on property, plant and equipment and investment property, net | (159,532 | ) | (3,169,644 | ) | ||||
Litigation expenses and other losses | (3,247,468 | ) | (6,666,055 | ) | ||||
$ | (1,176,393 | ) | (10,665,140 | ) |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Interest expense on bonds | $ | 641,437 | 725,303 | |||||
Interest expense on long-term borrowings | 3,951,168 | 4,734,927 | ||||||
Interest expense on short-term borrowings | 190,227 | 270,983 | ||||||
$ | 4,782,832 | 5,731,213 |
Financial Instruments |
Contractual cash flows | 2014.1.1~ 2014.12.31 | 2015.1.1~ 2015.12.31 | 2016.1.1~ 2018.12.31 | 2019 and thereafter | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||
Short-term borrowings | $ | 3,457,174 | 3,457,174 | - | - | - | ||||||||||||||
Convertible bonds payable | 20,608,778 | - | 20,608,778 | - | - | |||||||||||||||
Long-term borrowings (including current installments) | 167,114,922 | 65,261,130 | 42,062,383 | 59,682,614 | 108,795 | |||||||||||||||
Refundable deposits | 950,958 | 36,671 | 240 | - | 914,047 | |||||||||||||||
Derivative financial liabilities | ||||||||||||||||||||
Foreign currency forward contracts-inflows | (16,909,871 | ) | (16,909,871 | ) | - | - | - | |||||||||||||
Foreign currency forward contracts-outflows | 17,273,048 | 17,273,048 | - | - | - | |||||||||||||||
Interest rate swap contracts | 38,243 | 24,157 | 7,281 | 6,805 | - | |||||||||||||||
$ | 192,533,252 | 69,142,309 | 62,678,682 | 59,689,419 | 1,022,842 |
Contractual cash flows | 2013.1.1~ 2013.12.31 | 2014.1.1~ 2014.12.31 | 2015.1.1~ 2017.12.31 | 2018 and thereafter | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
December 31, 2012 | ||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||
Short-term borrowings | $ | 8,620,050 | 8,620,050 | - | - | - | ||||||||||||||
Convertible bonds payable | 23,515,750 | - | - | 23,515,750 | - | |||||||||||||||
Long-term borrowings (including current installments) | 200,988,563 | 51,293,526 | 63,444,168 | 86,250,869 | - | |||||||||||||||
Refundable deposits | 1,033,644 | 10,684 | 3,791 | 17,586 | 1,001,583 | |||||||||||||||
Derivative financial liabilities | ||||||||||||||||||||
Foreign currency forward contracts-inflows | (18,673,156 | ) | (18,673,156 | ) | - | - | - | |||||||||||||
Foreign currency forward contracts-outflows | 19,389,553 | 19,389,553 | - | - | - | |||||||||||||||
Interest rate swap contracts | 100,571 | 62,202 | 38,369 | - | - | |||||||||||||||
Options contracts | 62,208 | 62,208 | - | - | - | |||||||||||||||
$ | 235,037,183 | 60,765,067 | 63,486,328 | 109,784,205 | 1,001,583 |
Contractual cash flows | 2012.1.1~ 2012.12.31 | 2013.1.1~ 2013.12.31 | 2014.1.1~ 2016.12.31 | 2017 and thereafter | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
January 1, 2012 | ||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||
Short-term borrowings | $ | 7,850,793 | 7,850,793 | - | - | - | ||||||||||||||
Bonds payable (including current installments) | 3,629,781 | 3,629,781 | - | - | - | |||||||||||||||
Convertible bonds payable | 24,455,540 | - | - | 24,455,540 | - | |||||||||||||||
Long-term borrowings (including current installments) | 209,567,304 | 49,006,279 | 50,447,029 | 110,113,996 | - | |||||||||||||||
Refundable deposits | 1,072,900 | 54,187 | - | - | 1,018,713 | |||||||||||||||
Derivative financial liabilities | ||||||||||||||||||||
Foreign currency forward contracts-inflows | (15,657,963 | ) | (15,657,963 | ) | - | - | - | |||||||||||||
Foreign currency forward contracts-outflows | 15,584,516 | 15,584,516 | - | - | - | |||||||||||||||
Interest rate swap contracts | 292,136 | 121,642 | 100,343 | 70,151 | - | |||||||||||||||
Options contracts | 176,013 | 90,753 | 85,260 | - | - | |||||||||||||||
$ | 246,971,020 | 60,679,988 | 50,632,632 | 134,639,687 | 1,018,713 |
Foreign currence amounts | Exchange rate | NTD | ||||||||||
(in thousands) | ||||||||||||
December 31, 2013 | ||||||||||||
Financial assets | ||||||||||||
Monetary items | ||||||||||||
USD | $ | 2,328,517 | 30.03 | 69,925,366 | ||||||||
JPY | 21,032,926 | 0.2856 | 6,007,004 | |||||||||
EUR | 45,289 | 41.45 | 1,877,229 | |||||||||
Financial liabilities | ||||||||||||
Monetary items | ||||||||||||
USD | 1,619,975 | 30.03 | 48,647,849 | |||||||||
JPY | 35,677,985 | 0.2856 | 10,189,633 | |||||||||
EUR | 756 | 41.45 | 31,336 | |||||||||
December 31, 2012 | ||||||||||||
Financial assets | ||||||||||||
Monetary items | ||||||||||||
USD | 2,664,861 | 29.126 | 77,616,741 | |||||||||
JPY | 26,173,221 | 0.3383 | 8,854,401 | |||||||||
EUR | 126,319 | 38.548 | 4,869,345 | |||||||||
Financial liabilities | ||||||||||||
Monetary items | ||||||||||||
USD | 1,981,322 | 29.126 | 57,707,985 | |||||||||
JPY | 42,469,046 | 0.3383 | 14,367,278 | |||||||||
EUR | 10,341 | 38.548 | 398,625 | |||||||||
January 1, 2012 | ||||||||||||
Financial assets | ||||||||||||
Monetary items | ||||||||||||
USD | 2,476,516 | 30.29 | 75,013,670 | |||||||||
JPY | 32,197,451 | 0.3902 | 12,563,445 | |||||||||
EUR | 95,619 | 39.259 | 3,753,906 | |||||||||
Financial liabilities | ||||||||||||
Monetary items | ||||||||||||
USD | 1,539,705 | 30.29 | 46,637,664 | |||||||||
JPY | 35,237,397 | 0.3902 | 13,749,632 | |||||||||
EUR | 15,458 | 39.259 | 606,866 |
(1) | Fair value and carrying amount |
December 31, 2014 | December 31, 2013 | |||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
(in thousands) | ||||||||||||||||
Financial assets: | ||||||||||||||||
Available-for-sale financial assets-noncurrent | $ | 77,724 | 77,724 | 700,730 | 700,730 | |||||||||||
Foreign currency forward contracts | 133,412 | 133,412 | 48,850 | 48,850 | ||||||||||||
Refundable deposits | 132,170 | 132,170 | 140,386 | 140,386 | ||||||||||||
Financial liabilities: | ||||||||||||||||
Long-term borrowings (including current installments) | 127,196,427 | 127,196,427 | 161,737,175 | 161,742,386 | ||||||||||||
Convertible bonds payable | 15,110,028 | 14,732,296 | 19,513,820 | 18,477,322 | ||||||||||||
Foreign currency forward contracts | 232,879 | 232,879 | 420,861 | 420,861 | ||||||||||||
Interest rate swap contracts | 7,093 | 7,093 | 17,062 | 17,062 | ||||||||||||
Guarantee deposits received | 807,593 | 807,593 | 950,958 | 950,958 |
(2) | Valuation techniques and assumptions applied in fair value measurement |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||
Available-for-sale financial assets-noncurrent | $ | 700,730 | 700,730 | 1,577,024 | 1,577,024 | 1,924,569 | 1,924,569 | |||||||||||||||||
Foreign currency forward contracts | 48,850 | 48,850 | 23,621 | 23,621 | 85,621 | 85,621 | ||||||||||||||||||
Interest rate swap contracts | - | - | - | - | 3 | 3 | ||||||||||||||||||
Options contracts | - | - | 66 | 66 | 172 | 172 | ||||||||||||||||||
Refundable deposits (excluding guarantee for lawsuits) | 140,386 | 140,386 | 297,692 | 297,692 | 404,751 | 404,751 | ||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||
Long-term borrowings (including current installments) | 161,737,175 | 161,742,386 | 192,908,412 | 192,932,107 | 198,957,069 | 198,972,893 | ||||||||||||||||||
Convertible bonds payable | 19,513,820 | 18,477,322 | 21,598,083 | 18,292,497 | 21,787,128 | 16,649,444 | ||||||||||||||||||
Current installments of bonds payable | - | - | - | - | 3,564,383 | 3,638,651 | ||||||||||||||||||
Foreign currency forward contracts | 420,861 | 420,861 | 804,001 | 804,001 | 17,523 | 17,523 | ||||||||||||||||||
Interest rate swap contracts | 17,062 | 17,062 | 58,547 | 58,547 | 198,401 | 198,401 | ||||||||||||||||||
Options contracts | - | - | 54,000 | 54,000 | 176,185 | 176,185 | ||||||||||||||||||
Guarantee deposits received | 950,958 | 950,958 | 1,033,644 | 1,033,644 | 1,072,900 | 1,072,900 |
Fair value |
(i) | Level 1 inputs: Unadjusted quoted prices for identical assets or liabilities in active markets accessible to the entity at the measurement date. |
(ii) | Level 2 inputs: Other than quoted prices included in Level 1, inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. |
(iii) | Level 3 inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
Assets: | ||||||||||||||||
Available-for-sale financial assets-noncurrent | $ | 400,011 | - | 300,719 | 700,730 | |||||||||||
Foreign currency forward contracts | - | 48,850 | - | 48,850 | ||||||||||||
Liabilities: | ||||||||||||||||
Foreign currency forward contracts | - | 420,861 | - | 420,861 | ||||||||||||
Interest rate swap contracts | - | 17,062 | - | 17,062 | ||||||||||||
Long-term borrowings (including current installments) | - | 161,742,386 | - | 161,742,386 | ||||||||||||
Convertible bonds payable | 18,477,322 | - | - | 18,477,322 | ||||||||||||
December 31, 2012 | ||||||||||||||||
Assets: | ||||||||||||||||
Available-for-sale financial assets-noncurrent | $ | 235,134 | - | 1,341,890 | 1,577,024 | |||||||||||
Foreign currency forward contracts | - | 23,621 | - | 23,621 | ||||||||||||
Options contracts | - | 66 | - | 66 | ||||||||||||
Liabilities: | ||||||||||||||||
Foreign currency forward contracts | - | 804,001 | - | 804,001 | ||||||||||||
Interest rate swap contracts | - | 58,547 | - | 58,547 | ||||||||||||
Options contracts | - | 54,000 | - | 54,000 | ||||||||||||
Long-term borrowings (including current installments) | - | 192,932,107 | - | 192,932,107 | ||||||||||||
Convertible bonds payable | 18,292,497 | - | - | 18,292,497 | ||||||||||||
January 1, 2012 | ||||||||||||||||
Assets: | ||||||||||||||||
Available-for-sale financial assets-noncurrent | $ | 436,774 | - | 1,487,795 | 1,924,569 | |||||||||||
Foreign currency forward contracts | - | 85,621 | - | 85,621 | ||||||||||||
Interest rate swap contracts | - | 3 | - | 3 | ||||||||||||
Options contracts | - | 172 | - | 172 | ||||||||||||
Liabilities: | ||||||||||||||||
Foreign currency forward contracts | - | 17,523 | - | 17,523 | ||||||||||||
Interest rate swap contracts | - | 198,401 | - | 198,401 | ||||||||||||
Options contracts | - | 176,185 | - | 176,185 | ||||||||||||
Long-term borrowings (including current installments) | - | 198,972,893 | - | 198,972,893 |
Convertible bonds payable | 16,649,444 | - | - | 16,649,444 | ||||||||||||
Current installments of bonds payable | - | 3,638,651 | - | 3,638,651 |
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in thousands) | ||||||||||||||||
December 31, 2014 | ||||||||||||||||
Assets: | ||||||||||||||||
Available-for-sale financial assets-noncurrent | $ | 40,379 | - | 37,345 | 77,724 | |||||||||||
Foreign currency forward contracts | - | 133,412 | - | 133,412 | ||||||||||||
Liabilities: | ||||||||||||||||
Foreign currency forward contracts | - | 232,879 | - | 232,879 | ||||||||||||
Interest rate swap contracts | - | 7,093 | - | 7,093 | ||||||||||||
December 31, 2013 | ||||||||||||||||
Assets: | ||||||||||||||||
Available-for-sale financial assets-noncurrent | $ | 400,011 | - | 300,719 | 700,730 | |||||||||||
Foreign currency forward contracts | - | 48,850 | - | 48,850 | ||||||||||||
Liabilities: | ||||||||||||||||
Foreign currency forward contracts | - | 420,861 | - | 420,861 | ||||||||||||
Interest rate swap contracts | - | 17,062 | - | 17,062 |
(4) | Reconciliation for recurring fair value measurements categorized within Level 3 |
Available-for- sale financial assets without quoted market prices | Available-for-sale financial assets without quoted market prices | |||||||
(in thousands) | (in thousands) | |||||||
Balance at January 1, 2012 | $ | 1,487,795 | $ | 1,487,795 | ||||
Net realized/unrealized losses included in: | ||||||||
Profit or loss | (11,512 | ) | ||||||
Other comprehensive income | - | |||||||
Sales | (65,554 | ) | ||||||
Effect of change in exchange rate | (68,839 | ) | ||||||
Balance at December 31, 2012 | 1,341,890 | |||||||
Net realized/unrealized gains included in: | ||||||||
Profit or loss | 282,558 | (11,512 | ) | |||||
Other comprehensive income | - | - | ||||||
Purchases | 209,478 | |||||||
Sales | (1,063,157 | ) | ||||||
Transfer out (i) | (349,799 | ) | ||||||
Disposals | (65,554 | ) | ||||||
Effect of change in exchange rate | (120,251 | ) | (68,839 | ) | ||||
Balance at December 31, 2013 | $ | 300,719 | ||||||
Balance at December 31, 2012 | 1,341,890 |
Available-for-sale financial assets without quoted market prices | ||||
(in thousands) | ||||
Net realized/unrealized gains included in: | ||||
Profit or loss | 282,558 | |||
Other comprehensive income | - | |||
Purchases | 209,478 | |||
Disposals | (1,063,157 | ) | ||
Transfer out(i) | (349,799 | ) | ||
Effect of change in exchange rate | (120,251 | ) | ||
Balance at December 31, 2013 | 300,719 | |||
Net realized/unrealized gains included in: | ||||
Profit or loss | 868,742 | |||
Other comprehensive income | - | |||
Purchases | 1,681 | |||
Disposals | (1,122,214 | ) | ||
Effect of change in exchange rate | (11,583 | ) | ||
Balance at December 31, 2014 | $ | 37,345 |
(i) | Investment in securities with a fair value of $353,836 thousand were transferred from Level 3 to Level 1 during the year of 2013 as a result of increased activity in the market for securities that were not being actively traded in the prior year. |
(ii) | Change in unrealized losses, which were included in profit or loss, relating to those available-for-sale assets without quoted market prices held at December 31, 2014, 2013 and 2012 were |
(5) | Description of valuation processes for fair value measurements categorized within Level 3 |
Financial Risk Management |
(a) | Risk management framework |
(b) | Financial risk information |
(1) | Credit risk |
(i) | The carrying amount of financial assets recognized in the consolidated statements of financial position. |
(ii) | The amount of contingent liabilities as a result from the Company providing financial guarantee to its customers. |
(2) | Liquidity risk |
Contractual cash flows | 2015.1.1~ 2015.12.31 | 2016.1.1~ 2017.12.31 | 2018.1.1~ 2019.12.31 | 2020 and thereafter | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||
Short-term borrowings | $ | 381,322 | 381,322 | - | - | - | ||||||||||||||
Convertible bonds payable | 15,532,015 | 15,532,015 | - | - | - | |||||||||||||||
Long-term borrowings (including current installments) | 131,971,590 | 43,779,619 | 69,419,753 | 18,772,218 | - | |||||||||||||||
Refundable deposits | 807,593 | 35,934 | 3,394 | - | 768,265 | |||||||||||||||
Derivative financial liabilities | ||||||||||||||||||||
Foreign currency forward contracts-inflows | (22,612,172 | ) | (22,612,172 | ) | - | - | - | |||||||||||||
Foreign currency forward contracts-outflows | 22,750,934 | 22,750,934 | - | - | - | |||||||||||||||
Interest rate swap contracts | 13,745 | 7,105 | 6,640 | - | - | |||||||||||||||
$ | 148,845,027 | 59,874,757 | 69,429,787 | 18,772,218 | 768,265 |
Contractual cash flows | 2014.1.1~ 2014.12.31 | 2015.1.1~ 2016.12.31 | 2017.1.1~ 2018.12.31 | 2019 and thereafter | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Non-derivative financial liabilities | ||||||||||||||||||||
Short-term borrowings | $ | 3,457,174 | 3,457,174 | - | - | - | ||||||||||||||
Convertible bonds payable | 20,608,778 | - | 20,608,778 | - | - | |||||||||||||||
Long-term borrowings (including current installments) | 167,114,922 | 65,261,130 | 90,953,610 | 10,791,387 | 108,795 | |||||||||||||||
Refundable deposits | 950,958 | 36,671 | 240 | - | 914,047 | |||||||||||||||
Derivative financial liabilities | ||||||||||||||||||||
Foreign currency forward contracts-inflows | (16,909,871 | ) | (16,909,871 | ) | - | - | - | |||||||||||||
Foreign currency forward contracts-outflows | 17,273,048 | 17,273,048 | - | - | - | |||||||||||||||
Interest rate swap contracts | 38,243 | 24,157 | 12,425 | 1,661 | - | |||||||||||||||
$ | 192,533,252 | 69,142,309 | 111,575,053 | 10,793,048 | 1,022,842 |
(3) | Market risk |
(i) | Currency risk |
A. | The Company’s significant exposure to foreign currency risk was as follows: |
Foreign currency amounts | Exchange rate | NTD | |||||||||||
(in thousands) | |||||||||||||
December 31, 2014 | |||||||||||||
Financial assets | |||||||||||||
Monetary items | |||||||||||||
USD | $ | 2,510,720 | 31.766 | 79,755,532 | |||||||||
JPY | 19,505,484 | 0.2659 | 5,186,508 | ||||||||||
EUR | 103,979 | 38.615 | 4,015,149 | ||||||||||
Financial liabilities | |||||||||||||
Monetary items | |||||||||||||
USD | 1,401,660 | 31.766 | 44,525,132 | ||||||||||
JPY | 31,528,747 | 0.2659 | 8,383,494 | ||||||||||
EUR | 407 | 38.615 | 15,716 | ||||||||||
December 31, 2013 | |||||||||||||
Financial assets | |||||||||||||
Monetary items | |||||||||||||
USD | $ | 2,328,517 | 30.03 | 69,925,366 | |||||||||
JPY | 21,032,926 | 0.2856 | 6,007,004 | ||||||||||
EUR | 45,289 | 41.45 | 1,877,229 | ||||||||||
Financial liabilities | |||||||||||||
Monetary items | |||||||||||||
USD | 1,619,975 | 30.03 | 48,647,849 | ||||||||||
JPY | 35,677,985 | 0.2856 | 10,189,633 | ||||||||||
EUR | 756 | 41.45 | 31,336 |
B. | Sensitivity analysis |
For the years ended December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
1% of depreciation | $ | 360,328 | 189,372 | |||||
1% of appreciation | (360,328 | ) | (189,372 | ) |
(ii) | Interest rate risk |
(iii) | Equity price risk |
Capital Management |
December 31, 2013 | December 31, 2012 | January 1, 2012 | December 31, | |||||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Total liabilities | $ | 311,845,715 | 378,859,660 | 396,894,918 | $ | 268,357,388 | 311,845,715 | |||||||||||||
Total equity | 152,990,220 | 136,148,799 | 191,550,583 | 173,986,932 | 152,990,220 | |||||||||||||||
Interest-bearing debts | 184,708,169 | 223,126,545 | 232,159,373 | 142,687,777 | 184,708,169 | |||||||||||||||
Debt-to-equity ratio | 204% | 278% | 207% | 154 | % | 204 | % | |||||||||||||
Interest-bearing debt-to-equity ratio | 121% | 164% | 121% | 82 | % | 121 | % |
Related-party Transactions |
(a) | Compensation to executive officers |
For the years ended December 31, | ||||||||||||||||||||
2013 | 2012 | For the years ended December 31, | ||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Short-term employee benefits | $ | 232,064 | 198,077 | $ | 366,698 | 232,064 | 198,077 | |||||||||||||
Post-employment benefit | 3,062 | 3,139 | 3,064 | 3,062 | 3,139 | |||||||||||||||
Termination benefits | - | 895 | - | - | 895 | |||||||||||||||
$ | 235,126 | 202,111 | $ | 369,762 | 235,126 | 202,111 |
(b) | Except as disclosed in the consolidated financial statements and other |
(1) | Sales |
Sales | Receivables from related parties | Sales | Accounts receivable from related parties | |||||||||||||||||||||||||||||||||||||
For the years ended December 31, | December 31, | December 31, | January 1, | For the years ended December 31, | December 31, | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | |||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||
Associates | $ | 28,397,655 | 33,927,270 | 2,591,012 | 5,805,498 | 5,869,246 | $ | 18,187,621 | 28,397,655 | 33,927,270 | 3,252,973 | 2,591,012 | ||||||||||||||||||||||||||||
Joint ventures | 4,116,521 | 4,162,424 | 441,894 | 385,581 | 914,359 | 4,484,111 | 4,116,521 | 4,162,424 | 360,551 | 441,894 | ||||||||||||||||||||||||||||||
$ | 32,514,176 | 38,089,694 | 3,032,906 | 6,191,079 | 6,783,605 | $ | 22,671,732 | 32,514,176 | 38,089,694 | 3,613,524 | 3,032,906 |
(2) | Purchases |
Purchases | Payables to related parties | Purchases | Accounts payable to related parties | |||||||||||||||||||||||||||||||||||||
For the years ended December 31, | December 31, | December 31, | January 1, | For the years ended December 31, | December 31, | |||||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | |||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||
Associates | $ | 53,673,936 | 54,358,330 | 14,861,035 | 15,725,450 | 17,428,741 | $ | 42,772,402 | 53,673,936 | 54,358,330 | 11,144,578 | 14,861,035 | ||||||||||||||||||||||||||||
Joint ventures | 730,107 | 531,269 | 91,541 | 89,478 | 25,438 | 2,854,654 | 730,107 | 531,269 | 319,363 | 91,541 | ||||||||||||||||||||||||||||||
$ | 54,404,043 | 54,889,599 | 14,952,576 | 15,814,928 | 17,454,179 | $ | 45,627,056 | 54,404,043 | 54,889,599 | 11,463,941 | 14,952,576 |
(3) | Disposal of property, plant and equipment, operating leases, and others |
For the years ended December 31, | ||||||||||||||||||||
2013 | 2012 | For the years ended December 31, | ||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||
(in thousands) | ||||||||||||||||||||
Associates | $ | 16,815 | 30,571 | $ | 17,891 | 16,815 | 30,571 | |||||||||||||
Joint ventures | 16,291 | 49,639 | 10,555 | 16,291 | 49,639 | |||||||||||||||
$ | 33,106 | 80,210 | $ | 28,446 | 33,106 | 80,210 |
December 31, 2013 | December 31, 2012 | January 1, 2012 | December 31, | |||||||||||||||||
(in thousands) | 2014 | 2013 | ||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Associates | $ | 86,442 | 68,528 | 114,383 | $ | 53,249 | 86,442 | |||||||||||||
Joint ventures | 6,976 | 22,657 | 77,116 | 3,696 | 6,976 | |||||||||||||||
$ | 93,418 | 91,185 | 191,499 | $ | 56,945 | 93,418 |
(4) | Acquisition of property, plant and equipment and others |
December 31, 2013 | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Associates | $ | 70,552 | 76,065 | 179,254 | ||||||||
Joint ventures | - | - | 981 | |||||||||
$ | 70,552 | 76,065 | 180,235 |
For the years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Associates | $ | 259,059 | 309,381 | 437,541 | ||||||||
Joint ventures | 3 | - | - | |||||||||
$ | 259,062 | 309,381 | 437,541 |
December 31, | ||||||||
2014 | 2013 | |||||||
(in thousands) | ||||||||
Associates | $ | 56,902 | 70,552 |
Pledged Assets |
December 31, | ||||||||||||||||||||||||
Pledged assets | Pledged to secure | December 31, 2013 | December 31, 2012 | January 1, 2012 | Pledged to secure | 2014 | 2013 | |||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||
Restricted cash in banks (classified as other financial assets)(1) | R&D projects, oil purchases and guarantees for customs duties | $ | 217,383 | 410,592 | 158,509 | |||||||||||||||||||
Secured deposit (classified as other current assets) | Guarantees for lawsuit | - | 4,778,288 | 4,778,288 | ||||||||||||||||||||
Restricted cash in banks (classified as other financial assets)(i) | R&D projects, oil purchases and guarantees for customs duties | $ | 283,773 | 217,383 | ||||||||||||||||||||
Land and building (including investment property) | Long-term borrowings | 75,986,659 | 79,807,136 | 92,496,496 | Long-term borrowings | 72,299,601 | 75,986,659 | |||||||||||||||||
Machinery, equipment and prepayments for equipment | Long-term borrowings and bonds payable | 84,579,427 | 110,411,432 | 162,782,620 | Long-term borrowings and bonds payable | 58,285,716 | 84,579,427 | |||||||||||||||||
Available-for-sale financial assets | Long-term borrowings | - | 2,829 | 3,309 | ||||||||||||||||||||
$ | 160,783,469 | 195,410,277 | 260,219,222 | $ | 130,869,090 | 160,783,469 |
(i) | Other financial assets are classified as current or noncurrent by its liquidity. |
Commitments and Contingencies |
(a) | Outstanding letters of credit |
Currency | December 31, 2014 | ||||
(in thousands) | |||||
USD | 11,845 | ||||
JPY | 178,767 |
(b) | Technology licensing agreements |
(c) | Purchase commitments |
(d) | Litigation |
(1) | Alleged patent infringements |
(2) | Investigation for alleged violation of antitrust and competition laws |
(3) | Antitrust civil actions lawsuits in the United States and Canada |
(e) | Sales agreements |
(f) | Others |
(1) |
(2) | In July and August of 2014, SunPower Technology, Ltd. ("SPTL") and AUO and AUSG submitted certain disputes for arbitration in the International Court of Arbitration of the International Chamber of Commerce in San Francisco in connection with the Joint Venture Agreement entered into among the parties. The final outcome of this matter is uncertain, and the amount of possible loss, if any, of this matter is currently not estimable. |
(3) | There have been environmental proceedings relating to the development project of the Central Taiwan Science Park in Houli, Taichung, which AUO’s second 8.5-generation fab is located at and which has been established since 2010. On September 2, 2010, the Environmental Protection Administration of the Executive Yuan of Taiwan (“EPA”) issued its official announcement of the review conclusion of the environmental impact statement (“2010 conclusion of environmental assessment”) regarding the third phase development area in the Central Taiwan Science Park (Houli base-the portion of Seven Star Farm) (“Project”). On September 6, 2010, the National Science Council of the ROC Executive Yuan (“NSC”) issued the development approval (“2010 development approval”) to the developer, i.e., the Central Taiwan Science Park Development Office (“CTSP”). Six residents in Houli District, Taichung City objected to the administrative dispositions of the 2010 conclusion of the environmental assessment and 2010 development approval and then filed an administrative appeal, but it was overruled and then they filed an administrative litigation, but it was also overruled by the Taipei High Administrative Court (Case No. Taipei High Administrative Court Year 100 Su-Tzu No. 118). Subsequently, the plaintiffs lodged an appeal to the Supreme Administrative Court and the Supreme Administrative Court reversed the judgment of the Taipei High Administrative Court (Case No. Supreme Administrative Court Year 102 Pan-Tsu No. 120) and remanded the case to |
Segment, Geographic and Revenue Information |
(a) | Operating segment information |
For the year ended December 31, 2014 | ||||||||||||
Display | Solar | Total segments | ||||||||||
(in thousands) | ||||||||||||
Net revenue from external customers | $ | 384,335,201 | 23,843,549 | 408,178,750 | ||||||||
Depreciation and amortization | $ | 53,151,352 | 3,751,376 | 56,902,728 | ||||||||
Inventory write-down | $ | 4,678,921 | 52,398 | 4,731,319 | ||||||||
Segment profit (loss) (1) | $ | 24,422,504 | (2,257,081 | ) | 22,165,423 | |||||||
Other income | 2,162,107 | |||||||||||
Other gains and losses | (801,803 | ) | ||||||||||
Finance costs | (4,045,133 | ) | ||||||||||
Share of profit of equity-accounted investees | 499,865 | |||||||||||
Consolidated profit before income tax | $ | 19,980,459 |
For the year ended December 31, 2013 | ||||||||||||
Display | Solar | Total segments | ||||||||||
(in thousands) | ||||||||||||
Net revenue from external customers | $ | 398,836,176 | 17,526,829 | 416,363,005 | ||||||||
Depreciation and amortization | $ | 59,650,081 | 3,987,666 | 63,637,747 | ||||||||
Inventory write-down | $ | 5,051,554 | 54,977 | 5,106,531 | ||||||||
Segment profit (loss) (1) | $ | 12,017,876 | (3,725,355 | ) | 8,292,521 | |||||||
Other income | 2,448,464 | |||||||||||
Other gains and losses | (1,176,393 | ) | ||||||||||
Finance costs | (4,782,832 | ) | ||||||||||
Share of profit of equity-accounted investees | 454,268 | |||||||||||
Consolidated profit before income tax | $ | 5,236,028 |
For the year ended December 31, 2012 | ||||||||||||
Display | Solar | Total segments | ||||||||||
(in thousands) | ||||||||||||
Net revenue from external customers | $ | 367,120,352 | 11,350,583 | 378,470,935 | ||||||||
Depreciation and amortization | $ | 70,655,321 | 4,621,118 | 75,276,439 | ||||||||
Inventory write-down | $ | 4,766,239 | 114,171 | 4,880,410 | ||||||||
Segment loss (1) | $ | (30,330,814 | ) | (8,277,500 | ) | (38,608,314 | ) | |||||
Other income | 3,191,543 | |||||||||||
Other gains and losses | (10,665,140 | ) | ||||||||||
Finance costs | (5,731,213 | ) | ||||||||||
Share of profit of equity-accounted investees | 319,061 | |||||||||||
Consolidated loss before income tax | $ | (51,494,063 | ) |
For the year ended December 31, 2012 | ||||||||||||
Display | Solar | Total segments | ||||||||||
(in thousands) | ||||||||||||
Net revenue from external customers | $ | 367,120,352 | 11,350,583 | 378,470,935 | ||||||||
Depreciation and amortization | $ | 70,655,321 | 4,621,118 | 75,276,439 | ||||||||
Inventory write-down | $ | 4,766,239 | 114,171 | 4,880,410 | ||||||||
Segment profit (loss) (1) | $ | (30,330,814 | ) | (8,277,500 | ) | (38,608,314 | ) | |||||
Other income | 3,191,543 | |||||||||||
Other gains and losses | (10,665,140 | ) | ||||||||||
Finance costs | (5,731,213 | ) | ||||||||||
Share of profit of equity-accounted investees | 319,061 | |||||||||||
Consolidated profit before income tax | $ | (51,494,063 | ) |
(1) | There were no intersegment revenues or other transactions between operating segments for the years ended December 31, 2014, 2013 and 2012. |
(b) | Geographic information |
(1) | Net revenue |
For the years ended December 31, | For the years ended December 31, | |||||||||||||||||||
2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||
Taiwan | $ | 143,549,414 | 150,790,438 | $ | 135,420,498 | 143,549,414 | 150,790,438 | |||||||||||||
PRC | 141,951,316 | 114,469,451 | 135,102,406 | 141,951,316 | 114,469,451 | |||||||||||||||
Japan | 42,562,624 | 14,864,249 | 37,410,376 | 42,562,624 | 14,864,249 | |||||||||||||||
Singapore | 23,280,753 | 31,397,387 | 34,237,681 | 23,280,753 | 31,397,387 | |||||||||||||||
United States of America | 13,751,386 | 15,852,540 | ||||||||||||||||||
Korea | 12,574,058 | 18,864,208 | ||||||||||||||||||
Malaysia | 12,951,982 | 12,986,318 | 4,675,486 | |||||||||||||||||
Other foreign countries | 38,693,454 | 32,232,662 | 53,055,807 | 52,032,580 | 62,273,924 | |||||||||||||||
$ | 416,363,005 | 378,470,935 | $ | 408,178,750 | 416,363,005 | 378,470,935 |
(2) | Consolidated noncurrent assets( |
December 31, | ||||||||||||||||||||
December 31, 2013 | December 31, 2012 | January 1, 2012 | 2014 | 2013 | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
Taiwan | $ | 211,496,964 | 248,284,493 | 290,176,184 | $ | 169,813,439 | 200,216,369 | |||||||||||||
PRC | 42,556,298 | 42,893,682 | 40,874,169 | 42,385,591 | 42,556,298 | |||||||||||||||
Other foreign countries | 37,325,991 | 44,576,514 | 49,594,776 | 28,412,390 | 37,325,990 | |||||||||||||||
$ | 291,379,253 | 335,754,689 | 380,645,129 | $ | 240,611,420 | 280,098,657 |
Noncurrent assets are not inclusive of financial instruments, deferred tax, |
(c) | Major customer information |
For the years ended December 31, | ||||||||||||||||
2013 | % | 2012 | % | |||||||||||||
(in thousands) | ||||||||||||||||
Customer A | $ | 57,460,634 | 14 | 58,022,522 | 15 | |||||||||||
Customer B | 45,662,754 | 11 | 4,326,294 | 1 |
For the years ended December 31, | ||||||||||||||||||||||||
2014 | % | 2013 | % | 2012 | % | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Customer A | $ | 41,628,604 | 10 | 57,460,634 | 14 | 58,022,522 | 15 | |||||||||||||||||
Customer B | 36,103,435 | 9 | 45,662,754 | 11 | 4,326,294 | 1 | ||||||||||||||||||
$ | 77,732,039 | 19 | 103,123,388 | 25 | 62,348,816 | 16 |
(d) | The consolidated net revenue by principal products was as follows: |
For the years ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Panels for LCD Televisions(1) | $ | 188,428,209 | 168,892,202 | |||||
Panels for Mobile PCs | 78,376,753 | 72,373,580 | ||||||
Panels for Consumer Electronics Products | 63,271,788 | 57,746,542 | ||||||
Panels for Monitors | 59,564,195 | 59,575,998 | ||||||
Others(2) | 26,722,060 | 19,882,613 | ||||||
Total | $ | 416,363,005 | 378,470,935 |
For the years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(in thousands) | ||||||||||||
Products for Televisions | $ | 171,399,601 | 188,428,311 | 168,892,202 | ||||||||
Products for Mobile PCs | 75,353,605 | 78,376,753 | 72,373,580 | |||||||||
Products for Mobile Devices | 34,412,465 | 26,669,938 | 23,592,012 | |||||||||
Products for Monitors | 57,548,975 | 59,564,195 | 59,575,998 | |||||||||
Products for Commercial and Other Applications | 39,117,134 | 36,601,748 | 34,154,530 | |||||||||
Others(1) | 30,346,970 | 26,722,060 | 19,882,613 | |||||||||
Total | $ | 408,178,750 | 416,363,005 | 378,470,935 |
(1) |
Includes sales from solar business unit, from sales of raw materials, components and from service charges. |
Subsequent event |
December 31, 2012 | |||||||||||||||||
Previous GAAP | Effect of transition to IFRS | IFRS | Note | ||||||||||||||
(in thousands) | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 77,425,691 | (770,016 | ) | 76,655,675 | Cash and cash equivalents | 1. | ||||||||||
Financial assets measured at fair value-current | 23,621 | - | 23,621 | Financial assets measured at fair value through profit or loss-current | |||||||||||||
Notes and accounts receivable, net | 36,357,450 | - | 36,357,450 | Notes and accounts receivable, net | |||||||||||||
Receivables from related parties, net | 6,191,079 | - | 6,191,079 | Receivables from related parties, net | |||||||||||||
Other receivables from related parties | 91,185 | - | 91,185 | Other receivables from related parties | |||||||||||||
- | - | 65,832 | 65,832 | Income taxes receivable | |||||||||||||
Inventories, net | 42,585,982 | - | 42,585,982 | Inventories | |||||||||||||
Other current financial assets | 1,615,510 | 770,016 | 2,385,526 | Other current financial assets | 1.8. | ||||||||||||
Equity investment held for sales | 116,390 | - | 116,390 | Noncurrent assets held for sale | |||||||||||||
Prepayments and other current assets | 9,665,336 | (65,832 | ) | 9,599,504 | Other current assets | ||||||||||||
Deferred tax assets – current | 1,663,795 | (1,663,795 | ) | - | - | 2. | |||||||||||
Total current assets | 175,736,039 | (1,663,795 | ) | 174,072,244 | Total current assets | ||||||||||||
Long-term investments: | |||||||||||||||||
Financial assets measured at fair value-noncurrent | 66 | - | 66 | Financial assets measured at fair value through profit or loss -noncurrent | |||||||||||||
Available-for-sale financial assets-noncurrent | 235,134 | 1,341,890 | 1,577,024 | Available-for-sale financial assets-noncurrent | |||||||||||||
Financial assets carried at cost-noncurrent | 1,341,890 | (1,341,890 | ) | - | - | ||||||||||||
Equity-method investments | 13,811,600 | 7,581 | 13,819,181 | Investment in equity-accounted investees | 3. | ||||||||||||
Property, plant and equipment, net | 313,992,766 | 1,525,451 | 315,518,217 | Property, plant and equipment, net | 5.7. | ||||||||||||
- | - | 1,265,584 | 1,265,584 | Investment property, net | 5. | ||||||||||||
Intangible assets | 14,932,898 | (11,280,595 | ) | 3,652,303 | Intangible assets | 15. | |||||||||||
Other assets: | |||||||||||||||||
Deferred tax assets-noncurrent | 12,341,891 | (11,276,041 | ) | 1,065,850 | Deferred tax assets | 2.16. | |||||||||||
Deferred charges | 2,955,729 | (2,955,729 | ) | - | - | 6.7. | |||||||||||
Idle assets, net | 2,364,803 | (2,364,803 | ) | - | - | 5. | |||||||||||
Long-term prepayments for materials and others | 2,089,697 | 1,948,293 | 4,037,990 | Other noncurrent assets | 6.7.8.10. |
December 31, 2012 | |||||||||||||||||
Previous GAAP | Effect of transition to IFRS | IFRS | Note | ||||||||||||||
(in thousands) | |||||||||||||||||
Total noncurrent assets | 364,066,474 | (23,130,259 | ) | 340,936,215 | Total noncurrent assets | ||||||||||||
Total Assets | $ | 539,802,513 | (24,794,054 | ) | 515,008,459 | Total Assets | |||||||||||
Current liabilities: | |||||||||||||||||
Short-term borrowings | 8,620,050 | - | 8,620,050 | Short-term borrowings | |||||||||||||
Financial liabilities measured at fair value-current | 804,001 | - | 804,001 | Financial liabilities measured at fair value through profit or loss-current | |||||||||||||
Notes and accounts payable | 65,695,688 | - | 65,695,688 | Notes and accounts payable | |||||||||||||
Accounts payables to related parties | 15,814,928 | - | 15,814,928 | Accounts payables to related parties | |||||||||||||
Equipment and construction in progress payable | 14,597,502 | - | 14,597,502 | Equipment and construction payable | |||||||||||||
Other payables to related parties | 76,011 | - | 76,011 | Other payables to related parties | |||||||||||||
- | - | 246,548 | 246,548 | Current income tax liabilities | |||||||||||||
- | - | 20,452,981 | 20,452,981 | Provisions-current | |||||||||||||
Accrued expenses and other current liabilities | 40,495,553 | (20,072,128 | ) | 20,423,425 | Other current liabilities | 9. | |||||||||||
Current installments of long- term borrowings | 45,490,589 | - | 45,490,589 | Current installments of long- term borrowings | |||||||||||||
Total current liabilities | 191,594,322 | 627,401 | 192,221,723 | Total current liabilities | |||||||||||||
Long-term liabilities: | |||||||||||||||||
Financial liabilities measured at fair value-noncurrent | 54,000 | - | 54,000 | Financial liabilities measured at fair value through profit or loss-noncurrent | |||||||||||||
Hedging derivative financial liabilities-noncurrent | 58,547 | - | 58,547 | Hedging derivative financial liabilities-noncurrent | |||||||||||||
Convertible bonds payable | 21,598,083 | - | 21,598,083 | Convertible bonds payable | |||||||||||||
Long-term borrowings, excluding current installments | 147,417,823 | - | 147,417,823 | Long-term borrowings, excluding current installments | |||||||||||||
- | - | 8,658,360 | 8,658,360 | Provisions-noncurrent | |||||||||||||
- | - | 816,402 | 816,402 | Deferred tax liabilities | 2.16. | ||||||||||||
Long-term collection in advance and others | 6,421,035 | 1,613,687 | 8,034,722 | Other noncurrent liabilities | 10. | ||||||||||||
Total long-term liabilities | 175,549,488 | 11,088,449 | 186,637,937 | Total noncurrent liabilities | |||||||||||||
Other liabilities | 9,423,221 | (9,423,221 | ) | - | - | ||||||||||||
Total liabilities | 376,567,031 | 2,292,629 | 378,859,660 | Total liabilities | |||||||||||||
Equity: | |||||||||||||||||
Capital Stock: | |||||||||||||||||
Common stock, $10 par value | 88,270,455 | - | 88,270,455 | Common stock, $10 par value | |||||||||||||
Capital surplus | 114,384,422 | (1,868,439 | ) | 112,515,983 | Capital surplus | 3.4.11. | |||||||||||
Retained earnings: |
December 31, 2012 | |||||||||||||||||
Previous GAAP | Effect of transition to IFRS | IFRS | Note | ||||||||||||||
(in thousands) | |||||||||||||||||
Accumulated deficit | (54,614,704 | ) | (25,589,747 | ) | (80,204,451 | ) | Accumulated deficit | 17. | |||||||||
Others | 1,110,682 | 393,518 | 1,504,200 | Other components of equity | 3. | ||||||||||||
149,150,855 | (27,064,668 | ) | 122,086,187 | ||||||||||||||
Minority interests | 14,084,627 | (22,015 | ) | 14,062,612 | Non-controlling interests | ||||||||||||
Total stockholders’ equity | 163,235,482 | (27,086,683 | ) | 136,148,799 | Total equity | ||||||||||||
Total liabilities and stockholders’ equity | $ | 539,802,513 | (24,794,054 | ) | 515,008,459 | Total liabilities and equity |
January 1, 2012 | |||||||||||||||||
Previous GAAP | Effect of transition to IFRS | IFRS | Note | ||||||||||||||
(in thousands) | |||||||||||||||||
Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 90,836,668 | (783,400 | ) | 90,053,268 | Cash and cash equivalents | 1. | ||||||||||
Financial assets measured at fair value -current | 85,621 | - | 85,621 | Financial assets measured at fair value through profit or loss-current | |||||||||||||
Notes and accounts receivable, net | 44,747,926 | - | 44,747,926 | Notes and accounts receivable, net | |||||||||||||
Receivables from related parties, net | 6,783,605 | - | 6,783,605 | Receivables from related parties, net | |||||||||||||
Other receivables from related parties | 191,499 | - | 191,499 | Other receivables from related parties | |||||||||||||
- | - | 72,413 | 72,413 | Income taxes receivable | |||||||||||||
Inventories, net | 47,881,948 | - | 47,881,948 | Inventories | |||||||||||||
Other current financial assets | 1,280,078 | 803,400 | 2,083,478 | Other current financial assets | 1.8. | ||||||||||||
Prepayments and other current assets | 8,562,426 | (72,413 | ) | 8,490,013 | Other current assets | ||||||||||||
Deferred tax assets – current | 2,304,158 | (2,304,158 | ) | - | - | 2. | |||||||||||
Total current assets | 202,673,929 | (2,284,158 | ) | 200,389,771 | Total current assets | ||||||||||||
Long-term investments: | |||||||||||||||||
Financial assets measured at fair value -noncurrent | 175 | - | 175 | Financial assets measured at fair value through profit or loss-noncurrent | |||||||||||||
Available-for-sale financial assets- noncurrent | 436,774 | 1,487,795 | 1,924,569 | Available-for-sale financial assets-noncurrent | |||||||||||||
Financial assets carried at cost-noncurrent | 1,487,795 | (1,487,795 | ) | - | - | ||||||||||||
Equity-method investments | 15,917,335 | 4,490 | 15,921,825 | Investment in equity-accounted investees | 3. | ||||||||||||
Property, plant and equipment, net | 358,478,963 | 881,939 | 359,360,902 | Property, plant and equipment, net | 5.7. | ||||||||||||
- | - | 1,275,954 | 1,275,954 | Investment property, net | 5. | ||||||||||||
Intangible assets | 15,428,102 | (11,280,595 | ) | 4,147,507 | Intangible assets | 15. | |||||||||||
Other assets: | |||||||||||||||||
Deferred tax assets-noncurrent | 11,064,101 | (10,222,827 | ) | 841,274 | Deferred tax assets | 2.16. | |||||||||||
Deferred charges | 3,321,469 | (3,321,469 | ) | - | - | 6.7. | |||||||||||
Idle assets, net | 1,697,615 | (1,697,615 | ) | - | - | 5. |
January 1, 2012 | |||||||||||||||||
Previous GAAP | Effect of transition to IFRS | IFRS | Note | ||||||||||||||
(in thousands) | |||||||||||||||||
Long-term prepayments for materials and others | 2,271,886 | 2,311,638 | 4,583,524 | Other noncurrent assets | 6.7.8.10. | ||||||||||||
Total noncurrent assets | 410,104,215 | (22,048,485 | ) | 388,055,730 | Total noncurrent assets | ||||||||||||
Total Assets | $ | 612,778,144 | (24,332,643 | ) | 588,445,501 | Total Assets | |||||||||||
Current liabilities: | |||||||||||||||||
Short-term borrowings | 7,850,793 | - | 7,850,793 | Short-term borrowings | |||||||||||||
Financial liabilities measured at fair value -current | 17,523 | - | 17,523 | Financial liabilities measured at fair value through profit or loss -current | |||||||||||||
Notes and accounts payable | 65,244,893 | - | 65,244,893 | Notes and accounts payable | |||||||||||||
Accounts payables to related parties | 17,454,179 | - | 17,454,179 | Accounts payables to related parties | |||||||||||||
Equipment and construction in progress payable | 18,761,731 | - | 18,761,731 | Equipment and construction payable | |||||||||||||
Other payables to related parties | 168,004 | - | 168,004 | Other payables to related parties | |||||||||||||
- | - | 415,122 | 415,122 | Current income tax liabilities | |||||||||||||
- | - | 25,406,821 | 25,406,821 | Provisions-current | 14. | ||||||||||||
Accrued expenses and other current liabilities | 47,295,070 | (21,478,839 | ) | 25,816,231 | Other current liabilities | 9. | |||||||||||
Current installments of bonds payable | 3,564,383 | - | 3,564,383 | Current installments of bonds payable | |||||||||||||
Current installments of long-term borrowings | 42,868,289 | - | 42,868,289 | Current installments of long-term borrowings | |||||||||||||
Total current liabilities | 203,224,865 | 4,343,104 | 207,567,969 | Total current liabilities | |||||||||||||
Long-term liabilities: | |||||||||||||||||
Financial liabilities measured at fair value -noncurrent | 176,226 | - | 176,226 | Financial liabilities measured at fair value through profit or loss-noncurrent | |||||||||||||
Hedging derivative financial liabilities- noncurrent | 198,360 | - | 198,360 | Hedging derivative financial liabilities-noncurrent | |||||||||||||
Convertible bonds payable | 21,787,128 | - | 21,787,128 | Convertible bonds payable | |||||||||||||
Long-term borrowings, excluding current installments | 156,088,780 | - | 156,088,780 | Long-term borrowings, excluding current installments | |||||||||||||
- | - | 1,183,461 | 1,183,461 | Provisions-noncurrent |
January 1, 2012 | |||||||||||||||||
Previous GAAP | Effect of transition to IFRS | IFRS | Note | ||||||||||||||
(in thousands) | |||||||||||||||||
- | - | 446,194 | 446,194 | Deferred tax liabilities | 2.16. | ||||||||||||
Long-term collection in advance and others | 7,908,240 | 1,538,560 | 9,446,800 | Other noncurrent liabilities | 10. | ||||||||||||
Total long-term liabilities | 186,158,734 | 3,168,215 | 189,326,949 | Total noncurrent liabilities | |||||||||||||
Other liabilities | 2,117,607 | (2,117,607 | ) | - | - | ||||||||||||
Total liabilities | 391,501,206 | 5,393,712 | 396,894,918 | Total liabilities | |||||||||||||
Equity: | |||||||||||||||||
Capital Stock: | |||||||||||||||||
Common stock, $10 par value | 88,270,455 | - | 88,270,455 | Common stock, $10 par value | |||||||||||||
Capital surplus | 117,709,063 | (2,721,275 | ) | 114,987,788 | Capital surplus | 4.11. | |||||||||||
Retained earnings: | |||||||||||||||||
Accumulated deficit | (2,472,483 | ) | (27,671,968 | ) | (30,144,451 | ) | Accumulated deficit | 17. | |||||||||
Others | 1,881,681 | 684,346 | 2,566,027 | Other components of equity | 3. | ||||||||||||
205,388,716 | (29,708,897 | ) | 175,679,819 | ||||||||||||||
Minority interests | 15,888,222 | (17,458 | ) | 15,870,764 | Non-controlling interests | ||||||||||||
Total stockholders’ equity | 221,276,938 | (29,726,355 | ) | 191,550,583 | Total equity | ||||||||||||
Total liabilities and stockholders’ equity | $ | 612,778,144 | (24,332,643 | ) | 588,445,501 | Total liabilities and equity |
For the year ended December 31, 2012 | |||||||||||||||||
Previous GAAP | Effect of transition to IFRS | IFRS | Note | ||||||||||||||
(in thousands) | |||||||||||||||||
Net sales | $ | 378,470,935 | - | 378,470,935 | Net revenue | ||||||||||||
Cost of goods sold | (387,145,972 | ) | (4,447,859 | ) | (391,593,831 | ) | Cost of sales | 5.9.10.12.13. | |||||||||
Gross loss | (8,675,037 | ) | (4,447,859 | ) | (13,122,896 | ) | Gross loss | ||||||||||
Selling expenses | (9,802,235 | ) | 3,425,056 | (6,377,179 | ) | Selling and distribution expenses | 5.9.10.12.13. | ||||||||||
General and administrative expenses | (9,216,436 | ) | 12,496 | (9,203,940 | ) | General and administrative expenses | 5.9.10.13. | ||||||||||
Research and development expenses | (10,170,966 | ) | 266,667 | (9,904,299 | ) | Research and development expenses | 5.9.10.13. | ||||||||||
(29,189,637 | ) | - | - | - | |||||||||||||
Operating loss | (37,864,674 | ) | - | - | - |
For the year ended December 31, 2012 | |||||||||||||||||
Previous GAAP | Effect of transition to IFRS | IFRS | Note | ||||||||||||||
(in thousands) | |||||||||||||||||
Interest income | 476,117 | - | 476,117 | Other income | |||||||||||||
Investment gains recognized by equity method, net | 347,211 | (28,150 | ) | 319,061 | Share of profit of equity-accounted investees | 3. | |||||||||||
Gains on sale of investment securities, net | 455,531 | 158,754 | 614,285 | Other gains and losses | |||||||||||||
Foreign currency exchange gains, net | 1,988,284 | - | 1,988,284 | Other gains and losses | |||||||||||||
Other income | 2,924,416 | (2,924,416 | ) | - | - | ||||||||||||
Interest expenses | (5,731,213 | ) | - | (5,731,213 | ) | Finance costs | |||||||||||
Depreciation of idle assets | (594,364 | ) | 594,364 | - | - | 5. | |||||||||||
Asset impairment losses | (4,799,673 | ) | (152,385 | ) | (4,952,058 | ) | Other gains and losses | ||||||||||
Loss on valuation of financial instruments, net | (1,260,588 | ) | - | (1,260,588 | ) | Other gains and losses | |||||||||||
Provisions for potential litigation losses and others | (11,211,629 | ) | 11,211,629 | - | - | ||||||||||||
- | - | 2,715,426 | 2,715,426 | Other income | |||||||||||||
- | - | (7,055,063 | ) | (7,055,063 | ) | Other gains and losses | |||||||||||
Non-operating income and expenses | (17,405,908 | ) | - | - | - | ||||||||||||
Loss before income taxes | (55,270,582 | ) | 3,776,519 | (51,494,063 | ) | Loss before income tax | |||||||||||
Income tax expense | 636,422 | 487,562 | 1,123,984 | Income tax expense | |||||||||||||
Net loss | $ | (55,907,004 | ) | 3,288,957 | (52,618,047 | ) | Loss for the year | ||||||||||
(369,539 | ) | Actuarial loss in defined benefit plans | |||||||||||||||
(1,174,931 | ) | Foreign operations – foreign currency translation differences | |||||||||||||||
191,474 | Net change in fair value of available-for-sale financial assets | ||||||||||||||||
140,576 | Effective portion of changes in fair value of cash flow hedges | ||||||||||||||||
(282,016 | ) | Equity-accounted investees – share of other comprehensive loss | |||||||||||||||
(122,987 | ) | Realized gain on sales of securities transferred to profit or loss | |||||||||||||||
33,604 | Tax effect on other comprehensive loss | ||||||||||||||||
(1,583,819 | ) | Other comprehensive loss for the year, net of taxes | |||||||||||||||
$ | (54,201,866 | ) | Total comprehensive loss |
Note | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Investments in equity-accounted investees | 3, 4 | $ | (1,086 | ) | 104,393 | |||||||
Accumulated compensated absences | 9 | 120,878 | 88,479 | |||||||||
Defined benefit obligations | 10 | 226,529 | 169,146 | |||||||||
Convertible bonds and others | 11 | (15,141 | ) | (15,141 | ) | |||||||
Goodwill | 15 | 1,881,415 | 1,881,415 | |||||||||
Increase in deferred tax asset | $ | 2,212,595 | 2,228,292 |
Note | December 31, 2012 | January 1, 2012 | ||||||||||
(in thousands) | ||||||||||||
Investments in equity-accounted investees | 3, 4 | $ | (1,770,055 | ) | (2,625,141 | ) | ||||||
Accumulated compensated absences | 9 | 709,039 | 519,034 | |||||||||
Defined benefit obligations | 10 | 1,327,026 | 992,566 | |||||||||
Convertible bonds and others | 11 | (89,064 | ) | (89,064 | ) | |||||||
Deferred income taxes | 2 | 14,132,206 | 13,645,353 | |||||||||
Litigation provisions | 14 | - | 3,948,625 | |||||||||
Goodwill | 15 | 11,280,595 | 11,280,595 | |||||||||
Increase in accumulated deficit | $ | 25,589,747 | 27,671,968 |